JSE-listed Prism Holdings has achieved a significant turnaround in all aspects of its business, reporting headline earnings of 7.3c a share for the year to end-June.
<B>Salient figures</B>
Prism Holdings results for the year to 30 June 2003.
Previous year`s figures in parentheses:
Revenue: R304.15m (R208.17m)
Gross profit: R167.62m (R94.94m)
Operating profit: R45.85m (-R96.63m)
Profit before tax: R31.73m (-R324.39m)
Attributable earnings: R23.37m (-R292.01m)
EPS: 5.9c (-120.5c)
HEPS: 7.3c (-34c)
Cash generated by operations: R76.88m (R9.32m)
Current assets: R62.11m (R60.64m)
Cash resources: R24.48m (R6.71m)
Current liabilities: R72.43m (R134.94m)
NAV per share: 17c (20c)
Attributable earnings of R23.37 million compare with the previous year`s loss of R292.01 million. This was achieved on revenue of R304.15 million, 46% up on the year to June 2002.
CEO Alvin Els says more than 80% of revenue was generated from the sale of products and services incorporating the group`s own intellectual property as opposed to the resale of third-party technology.
New products and production efficiencies led to a 9% improvement in gross profit margins from 46% to 55% while cost controls saw operating expenses drop by 30%.
"Management is satisfied that the issues which the group faced during the previous financial year have been fully addressed and continued importance will be placed on cash management and organic growth," Els says.
The group is "cautiously optimistic" with regard to its prospects for the next financial year. Els says offshore initiatives remain a key component of the group`s organic growth strategy, which means operating profit is sensitive to fluctuations in the level of the rand against the dollar.
"The rand is currently trading at a level of approximately R7.50 to the dollar compared to an average rate of R9.03 to the dollar in the 2003 financial year, which will have an impact on earnings," he says.
Prism is aiming at diversifying risk and minimising the exposure related to any level of dependency on specific geographic regions or key customers. Els says new business development will be focused on working with channel partners to expand Prism`s technology into new geographical regions.
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