The Datacentrix share shot up yesterday after the group posted better than expected results and declared a total dividend of 30c a share.
The share gained 51c or 17% to close at 350c.
After a disappointing first half, described by chairman Gary Morolo last year as delivering the worst results in 14 or 15 reporting periods, the group turned around in the second half, achieving an 11.7% increase in full-year headline earnings per share (HEPS).
HEPS of 28.7c for year to February compare with a prior-year figure of 25.7c, while basic earnings per share rose 18.6% from 21.5c to 25.5c.
The 2005 figures have been restated to comply with international financial reporting standards (IFRS) and IFRS has also been applied to the current results.
"At the half-year our performance came as something of a shock to yourselves and as a disappointment to management as well," Morolo told analysts at the presentation of the figures yesterday.
[VIDEO]"But I`m happy to say we are back on track," he added. Morolo said there were various operational issues in the first half that were addressed in the back half of the financial year. In addition, deals that did not come through in the first half came through in the second.
The group reported a 17.3% increase in revenue to R1.03 billion from R882.21 million - the first time it has passed the R1 billion mark. A R70.43 million operating profit compares with R59.44 million previously.
The attributable profit rose 18.9% from R42.01 million to R49.95 million.
Morolo said the issue of cash holdings had often been raised, and the board had decided to address this by declaring a special dividend and changing Datacentrix`s dividend policy.
A special dividend of 16c per share has been declared, as well as an ordinary dividend of 14c per share. The dividend cover has been changed from three times cover to two times cover on HEPS.
At the same time, Morolo announced that, in line with the JSE and general corporate governance codes, the chairmanship of Datacentrix would revert to a non-executive position with immediate effect.
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