(PRWEB) February 28, 2008
The DigiCore board is extremely proud to announce an excellent all round performance from our subsidiaries, distributors, support divisions and branches for the six months ended 31 December 2007. We have managed to grow our turnover and basic earnings per share by 63% and 46% respectively, despite a generally tougher trading environment.
What made this growth even more remarkable is the fact that we have had compounded year-on-year growth, in excess of 30%, over the past six years.
Our operating profit grew by 61% from R48.8 million (2006) to R78.6 million. Earnings per share increased to 23.5 cents per share opposed to 16.1 cents per share in the comparative period last year, representing growth of 46%.
Cash generated from operating activities increased to R50.0 million from R42.4 million (2006) for the period. Cash and cash equivalents decreased by R11.8 million over the six-month period mainly due to dividend and tax payments as well as increased working capital requirements emanating from aggressive sales growth.
Inventories as a percentage of cost-of-sales have decreased although the rand value increased by R17 million from June 2007. Work-in-progress over the holiday season for final production and shipment in January 2008 was one of the main reasons for this increase.
Our debtors book increased by a further R5 million during the six-month period. The average outstanding debtors days have, however, decreased by 31 days despite the fact that payment on exported products entails a relatively lengthy chain of events in our international subsidiaries.
We are continuously focusing our attention on methods of reducing the working capital requirements.
Our product mix for our South African operations has changed substantially since 2006 with the growth of our C-track Secure Stolen Vehicle Recovery systems, this while maintaining our leadership role in the fleet management arena. We have been awarded substantially more business by Government and Blue Chip companies, continuing to underpin the quality of our products and services.
We have made great strides with the South African Police Service installations and software implementation and they are already reaping the benefits from using the system.
C-track Secure as a stolen vehicle recovery system has made better than expected inroads into this market during the six-month period. Strong monthly growth has been experienced in this very competitive market with some well established players.
Total manufactured units sales grew by just over 100% for the comparative period.
International sales have performed well for the period. Exports have increased by 153% and now account for 63% of total unit sales (50% in 2006).
Our subsidiaries in the UK and Europe achieved impressive growth, winning tenders from Royal Mail and several other Blue Chip utility companies, while Trakker Pakistan continues to live up to expectations.
Our distributors in the UAE and Nigeria have started performing well after an initial slow start up period.
Thus overall a great performance from abroad.
Prospects are looking good for the next 6 months of the financial year as we are continuing to roll out some of the contracts won during 2007. Strategies are in place to expand our local and international divisions. The demand for a technologically advanced Stolen Vehicle Recovery system at a reasonable price is growing and we believe greater inroads into this industry will be made in months to come. All indications are there that our newer distributors and partners abroad are now bedded down and healthy orders will flow through for production in the future.
In conclusion the board is comfortable that we can sustain a reasonable level of growth in the months to come.
For and on behalf of the board
NA Gasa NH Vlok
Chairman Chief executive officer