IST Group has reported growth in the year to end-February, despite delays in the Pebble Bed Modular Reactor (PMBR) project.
IST was awarded a R260 million contract for the design of three key systems for the reactor`s proposed demonstration plant at Koeberg. However, IST CEO Harry Coetzee says continued funding delays at the PBMR Company have constricted the anticipated revenue from this source.
"IST Data continued to do very well on the back of good products and its substantial footprint in the market," Coetzee says. "It is making rapid progress with the development of middleware products on the GE Smallworld platform and is also negotiating significant new GE Smallworld licences."
He says IST Telecom produced a creditable performance despite difficult circumstances. "It is awaiting adjudication of the Telkom IMAX tender and meanwhile is working with its principal supplier to push the ADSL rollout programme."
The most notable feature of the year was the investment of R62 million in acquisitions and the development of new products.
"Significant as these acquisitions are, they have not diminished our strong commitment to organic growth. In line with this, we invested some R28 million, with active customer participation, in the development and extension of our existing product offering in IST Dynamics, IST Data and IST Energy."
The focus on the year ahead will be on bedding down the acquisitions, taking advantage of the opportunities they have provided, and extracting the full value of the new products.
"All our divisions are budgeting for further growth and the board is confident that, barring a major deterioration in its operating environment, IST will again be able to deliver value to its stakeholders in the year to February 2005."
The latest figures show earnings of R26.13 million (2003: R22.29 million) on revenue of R323.49 million (R300.32 million).
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