JSE-listed MicroMega Holdings is confident it can achieve its aim of doubling turnover this year on the back of acquisitive and organic growth.
The company, in its half-year results to end-June, reported revenue of R154.6 million, up from R61.2 million in the corresponding period last year. For the full-year to end-December 2005, it reported revenue of R159.3 million.
In a statement to shareholders, the company says: "The increase of 152% in turnover is attributed to the impact of acquisitions made in the fourth quarter last year, as well as sound organic growth."
It is confident of maintaining these levels for the rest of the year. Going forward, the company aims to continue growing organically. "This, together with our ongoing strategy to acquire businesses, gives us confidence that our objective to continue to generate sustainable earnings growth can be achieved," it says.
Seasonal inventories
<B>Figures at a glance</B>
MicroMega results for the six months to 30 June 2006
Figures for the same period in 2005 in parentheses:
Revenue: R154.6 million (R61.2 million)
Pre-tax profit: R21.5 million (R5.5 million)
Profit after tax: R14.9 million (R3.5 million)
Attributable earnings: R13.5 million (R3.5 million)
Headline earnings per share: 14.37 (6.01)
Current assets: R98.4 million (R69.9 million)
Current liabilities: R27.2 million (R45.7 million)
Cash generated by operations: R22.3 million (R6.8 million)
MicroMega is also increasing its inventories and, at 30 June, had R11.9 million worth of stock, compared to R4.95 million in the previous corresponding period and R11.6 million for the last full year.
"The increase in stock levels from 2005 is one we anticipate to report on annually as we deliberately accumulate stock in our manufacturing businesses to accommodate the increase in seasonal sales in the second half of the year," it says.
Diversification is key
MicroMega, which was traditionally focused on the provision of financial services, has diversified and now sees a fifth of its business coming from the IT sector and a quarter from the support services sector.
"Our focus is now on 2007, we are satisfied with our ability to deliver this year and won`t disappoint the market. Next year presents new opportunities and we are working hard to ensure our organic growth coupled with our strategy to acquire further businesses is implemented effectively," says chairman Greg Morris.
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