Streamworks, a supply chain management and industrial IT solutions and services provider, lifted turnover 138% and earnings per share 214% in the six months to 30 September, thanks to an improved profile after listing on the JSE.
CEO Russell Kleyn says the performance has been entirely the result of strong organic growth in all the company's activities.
"The company's listing [in May 1999] contributed significantly to its higher profile and credibility in the local market," he says.
"Furthermore, the company benefited from an increase in customer awareness of the substantial benefits of supply chain management technology and related business-to-business and business-to-consumer e-commerce."
Kleyn says the result is that the company increased its business from existing customers and also broadened its customer base.
Turnover rose to R10.4 million from R4.4 million in the same period last year, while an improvement in operating margins from 21% to 26% saw operating income increase 189% to R2.7 million (1998: R927 000).
Earnings and headline earnings per share soared 214% to 2.2c (0.7c).
Kleyn says Streamworks also increased its future earnings potential during the period. It upgraded its range of in-house-developed supply chain and industrial IT software; enhanced its ability to earn good future annuity income by developing and maintaining a supply chain management system for three of its e-business customers in return for transaction-based fees; and bolstered its sales and marketing capabilities.
In addition, the company has established branch offices in Durban, Cape Town and Port Elizabeth, and has consolidated its operations, particularly the human resource and administrative requirements.
Kleyn says several acquisitions were considered during the period, but none met the company's criteria for adding shareholder value.
The company's directors are confident of its long-term prospects, particularly as there is a growing awareness of the commercial benefits of supply chain management and related e-commerce.
Kleyn does not rule out strategic alliances with other industry players.
The company's share, listed on the development capital sector, plunged to its lowest level of 20c earlier this month, losing almost 43% in two days. It was trading at 32c late on Tuesday morning, a 2c improvement on Monday's close.
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