ERP.com Holdings says its newly formed Africa division is profitable and will make a significant contribution to earnings over the next five years.
CEO Peter Forsyth says partners have been established in all major African countries with a growing pipeline of prospects.
In the six months to 31 January, ERP.com increased its attributable profit to R11.32 million from R9.02 million the same period a year earlier.
Turnover growth was limited to 8%, from R64.39 million to R69.81 million. Forsyth says this is because the strong rand caused many customers to postpone planned IT spend.
Headline and basic earnings per share rose from 5.5c to 6.8c.
The balance sheet records current assets of R78.93 million, R59.55 million of which is cash and cash equivalents. This compares with current liabilities of R38.29 million.
Forsyth says the information security and data and content management divisions, which contribute 53% and 14% of turnover respectively, both showed good growth in the period.
The enterprise applications business, accounting for 33% of turnover, was most affected by a slowdown in spend in the first six months.
However, he says the pipeline of planned projects is strong and the company is confident of an improved performance in the second six months.
The ERP.com share was trading 2c down at 130c on the JSE this morning.
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