Comparex Holdings` continuing operations achieved a 37.4% increase in headline earnings per share for the year to 31 May.
The group has published both statutory figures, which include five months` trading from the disposed European business, as well as the financial performance of the continuing operations.
Revenue from these operations increased by 1.7% in spite of what CEO Peter Watt describes as difficult trading conditions.
"The strategic focus of the group continues to be the growth of its services business relating to the outsourcing and annuity income sector, and its expansion into Africa," he says. "Management is confident that there will be an upturn in ICT spending in the near future and the group is well positioned to take advantage of this when it comes."
Watt envisages a restructuring of Comparex to better reflect its operational requirements and to accommodate black economic empowerment. He says this is purely a matter of cleaning up, as there is no need for the group to have both a holding company and operational company.
"We have every intention of concluding a [black economic empowerment] deal at the 25% level at Comparex Africa, which is one of the reasons why we need to clean up the structure, because we want to do the deal at the Comparex Africa level - the operating company level."
<B>Salient figures</B>
Comparex Holdings results for the year to 31 May 2003.
Previous year`s figures in parentheses:
Continuing operations:
Revenue: R2.75b (R2.7b)
Operating profit: R166.5m (R157.8m)
Profit before tax: R350.9m (-R34.5m)
Profit after tax: R261.4m (-R126m)
Attributable profit: R260.3m (-R152.2m)
HEPS: 107.6c (78.3c)
EPS: 99.1c (-51.6c)
Current assets: R2.79b (R2.46b)
Cash and equivalents: R2.19b (R1.77b)
Current liabilities: R627.7m (R707m)
He says the group has taken time to work through the process as it has stringent requirements for an empowerment partner. "But we`re on track and something will happen. It certainly is top of our agenda."
The group is planning a cash distribution to shareholders, although Watt says he cannot say yet when this will take place or what amount will be involved.
The group`s services and annuity businesses continued to contribute more than 70% of revenue, with the contribution of the product businesses declining.
Watt says the operations in the rest of Africa are performing well and business opportunities are increasing substantially. The Comparex share was trading at 720c by midmorning today, up 10c or 1.41% from yesterday`s close.
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