Spescom releases interim results

By Staff Writer for Spescom

Johannesburg, 18 May 2007

Spescom has released its interim results, announcing an overall 44% increase in turnover for the six months, ending 31 March 2007, compared to a year ago.

The group reported a R100 000 operating profit, after taking foreign exchange losses into account, in contrast to the operating loss of R7.4 million reported for the corresponding period last year.

Headline earnings per share of 4.1c, compare favourably with a headline loss of 15.7c per share, generated during the first half of the 2006 financial year.

In a statement to shareholders, Spescom's CFO, Jen'e Palmer, says the upward trend in trading results seen during the second half of the 2006 financial year has continued.

"The improved trading position can be attributed to the consistent growth achieved by the call centre, voice recording and media-IT divisions. Positive movement is anticipated in the telecoms sector."

She says trading profits converted into an improved cash position, with cash generated by operating activities reflecting a R9.6 million increase.

Large projects

"Restructuring of the balance sheet favourably impacted on gearing and liquidity levels. In this regard, the group secured alternative long-term financing, which enabled it to repay a substantial portion of its short-term debt."

In terms of the future, Palmer says the call centre division remains strong in the local market, and that growth is resulting from the company's drive into the rest of Africa.

She said Spescom's media division is benefiting from the roll-out of large projects in and around SA, and that, in the future, development of this industry holds much promise as broadcasters and production houses gear up for 2010.

According to Palmer, the group's voice operation is maintaining the momentum created during the second half of the 2006 financial year. "This division continues to make in-roads into the European and Middle Eastern markets, with expansion of channels to market via the ongoing sourcing and appointment of value-added resellers in these regions."

She also said profitability was improved by the positive contribution of R4.5 million resulting from Spescom's investment in its associate company Enterprise Informatics, previously known as Spescom Software.