With an extensive turnaround behind it, fleet management and vehicle tracking group DigiCore Holdings was cautiously optimistic as it entered the final stretch of the year still in the black.
The JSE-listed group on Thursday said it would now focus on delivering higher growth on revenue in the next six months, after reversing the losses experienced in 2013, reining in operating costs and stabilising its earnings in the six months to December 31.
DigiCore posted headline earnings a share of 9.37c for the six months under review, a 13.9% rise on the 8.23c reported in the prior corresponding period.
Earnings a share jumped 35.3% year-on-year to 11.1c for the six months to December.
The increase was mainly attributable to the turnaround of the company, cost-savings initiatives, the positive performance from its international businesses and an increase in revenue from the insurance and consumer industries.
Profit after tax reached R26.1-million in the half-year under review, up from the R21-million in the prior interim period.
Further, for the first time in five years, all of DigiCore’s international subsidiaries posted a profit, with around R7.5-million of the company’s R29.7-million pre-tax profit generated by the international units – a reversal from the loss of R3.5-million reported in the comparative period in the prior financial year.
Revenue ticked up 5.3% to R450.7-million, while operating expenses declined by 2.4% in the period under review.
“Performance for the first half of the financial year to December 31, 2014, has been very encouraging with all operations, local and international, reporting profits and solid progress against our strategic objectives and plans,” said CEO Nick Vlok.
“With costs now under control and internal processes being enhanced daily, management is left with the single task of increasing the revenue of the group.”