ERP.com grew headline earnings per share almost 53% to 5.5c in the six months to end-January, with the overall results for the period exceeding its objectives.
This is the first set of interim results from the group since it graduated to the JSE`s main board towards the end of last year.
<B>Salient figures</B>
ERP.com Holdings results for the six months to 31 January 2003.
Year-earlier figures in parentheses, move in square brackets:
Revenue: R64.39m (R52.97m) [+21.5%]
Profit before tax: R13.14m (R8.39m) [+56.6%]
Net profit: R9.07m (R5.89m) [+53.9%]
Net attributable income: R9.02m (R5.84m) [+54.6%]
HEPS: 5.5c (3.6c) [+52.8%]
NAV per share: 21.3c (14.4c)
Current assets: R58.36m (R37.31m)
Cash and equivalents: R41.27m (R18.02m)
Current liabilities: R28.12m (R20.81m)
Cash flows from operating activities: R14.99m (R9.86m)
ERP.com implements, integrates and manages enterprise-wide IT solutions, concentrating on enterprise applications (43% of interim revenue), information security (39%) and networking solutions (18%).
CEO Peter Forsyth says the key objectives during the period were to maintain historical earnings growth, maintain high operating margins and increase cash resources.
In fact, operating margins increased from 16.8% to 19.1% and cash resources rose from R18 million to R41 million.
Forsyth says ERP.com will continue to investigate new investment opportunities, although its approach to acquisitions is extremely cautious and the focus remains on organic growth.
"There is nothing immediate in the pipeline, but having the cash allows us to be able to take advantage of the right opportunity when it arises," he says.
He emphasises that there is no pressing need to make an acquisition. "I don`t think it`s a question of lacking anything. We`ve shown over the past three years that we can grow by 50%.
"But we are watching the market extremely closely. There are signs that spending is increasing, and if we can make an acquisition that helps build the company, we`ll do so. But I want to stress that we are very cautious about acquisitions."
He has also confirmed an earlier ITWeb report that Investec Asset Management had bought part of the 25% stake in ERP.com sold by Ronnie Price.
Investec Asset Management now owns 10% of the company. Treacle, which also bought part of Price`s stake, owns just short of 35%.
Forsyth says that historically the second-half performance is the same as or slightly better than the first, and indications are that this will continue to be the case.
The group`s share was trading 4c or 8.9% up at 49c this morning.
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