Technology holding company MB Technologies has grown its headline earnings per share for the interim period by 91% on better margins and increased turnover.
Revenue for the six months to February grew 46% to R1.3 billion. Operating profit for the period grew by 42% to R55.8 million after operating costs of R149 million.
The group decided to accelerate amortisation of goodwill arising from its acquisitions of software and services companies from seven years to five years.
Despite the more aggressive amortisation policy, an increased net interest and a higher tax rate (R9 million to R21 million), the group reported net profit of R52.8 million, up 75% on the comparable period.
Headline earnings grew from R32.3 million to R63.2 million, translating into headline earnings per share of 15.3c, reflecting growth of 91%.
Management says the group`s point-of-sale solutions company PC PoS experienced good growth and improved gross margins. The UK offering will be replicated in other international markets and head office expects continued growth from the subsidiary.
Local distribution company Tarsus Technologies is capitalising on the demise of chief competitor Siltek, and says it will continue with its strategy of controlled growth.
However, local e-business division MB Worksoft has had a difficult time this period, and the Infrastructure division is rationalising its operations.
No dividend was declared for the period.
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