Net1 Applied Technology Holdings (Aplitec) has increased its full-year profit from operations despite a drop in turnover.
<B>Salient figures</B>
Aplitec results for the year to 30 June 2002
Previous year`s figures in parentheses, move in square brackets:
Revenue: R525.59m (R557.45m) [-5.7%]
Profit from operations: R135m (R125.76m) [+7.4%]
Profit after tax: R105.73m (R94.27m) [+12.2%]
Net profit: R104.03m (R93.19m) [+11.6%]
HEPS: 44.61c (42.23c) [+5.6%]
Headline earnings: R102.6m (R95.03m) [+8%]
Current assets: R448.21m (R317.97m)
Cash and equivalents: R321.81m (R200.88m)
Current liabilities: R88.99m (R81.6m)
NAV per share: 179.24c (134.49c)
Tangible NAV per share: 171.41c (123.92c)
Cash generated from operations: R154.83m (R164.23m)
The smart card-based payment solutions company has declared a dividend of 11c per share for the year to 30 June.
CEO Serge Belamant says since listing in December 1997, the company`s attributable earnings and tangible net asset value per share have increased on a compounded basis by 116% and 36% a year respectively.
He attributes the fall in turnover mainly to a R43 million decline in turnover in the technology sales and outsourcing division, but adds that this is in line with global hardware IT trends.
Margins in the technology sales and outsourcing division increased significantly as a result of the division`s enhanced focus on providing solutions to generate recurring transaction revenues.
International initiatives accounted for 36% of the division`s revenue.
Belamant says the division will continue to focus on penetrating developing markets, where the Universal Electronic Payment System (UEPS) - a worldwide patented funds transfer system - has proven to be the most practical and cost-effective solution. Aplitec is the sole agent for the UEPS in SA.
The net margin of the pension and welfare division also increased, from 24% to 29%, as a result of tighter financial controls, enhanced reporting systems and improved distribution methods.
The division has been awarded about 60% of the new Eastern Cape social welfare contract for an initial period of three years, which will boost revenue by more than R100 million a year.
The company`s micro-finance division also increased revenue due to the Age Secure initiative, which has to date focused on KwaZulu-Natal.
"The management of Aplitec will continue to focus on those opportunities that deliver sustainable, profitable and cash-generative activities, while promoting the UEPS technology as the de facto standard for payment systems in developing economies," Belamant says.
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