SecureData rebounds

By Kimberly Guest for SecureData

Johannesburg, 18 Mar 2008

JSE-listed SecureData is rebounding following a year of challenges, restructuring and acquisitions.

Yesterday afternoon, the company reported half-year revenue of R112 million; 81.7% higher than the R61.7 million reported in the six months ended 31 January 2007.

At R13.9 million, net profit increased 261% from the 2006/7 half-year loss of R8.6 million. It was also 126% higher than the R6 million net profit posted at the full year.

SecureData notes that R18 million of its R112 million revenue was attributable to the acquisitions of SensePost and New Generation Solutions in August and September last year, respectively.

"The group outperformed on all anticipated growth metrics with a pleasing 41% growth in [earnings before income tax, depreciation and amortisation]. All divisions are contributing positively and both SensePost and NGS are performing above expectation," it said.

Noting that operating margins had declined to 19%, from 25% year-on-year, the company explained that this had been primarily driven by changes in product mix and significant increases in employment-related costs required to support its growth strategy.

"While the step change in employment-related expenses will not be repeated, the ongoing broadening of our product portfolio will cause operating margins to weaken slowly over time. The weakening margin will be more than offset by revenue growth," it said.

Although it expects these margins to firm in the second half of the year, the company warned that revenue growth could slow slightly.

"Ignoring the effect of any potential acquisitions, the company expects to maintain earnings per share growth for the full-year at between 25% and 30%," it said.

Earning per share (EPS) for the six months ended 31 January grew 25.3%, to 8.7c. Headline EPS increased 29.2%, to 8.7c.