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Johannesburg - Black-empowered provider of professional services, outsourcing and ICT solutions Simeka Business Group [JSE:SBG] on Friday announced diluted headline earnings per share of 4.31 cents for the six months ended November 2010, from 4c previously.
It noted diluted earnings per share of 4.25 cents, from a previous loss of 28.92c.
Revenue advanced to R411.09m from R373.7m, while turnover improved to R408.46m from R372.31m. Earnings before interest, tax, depreciation and amortisation were at R60.07m, from R50.33m in 2009.
Net margins improved from 5.9% to 7.3% as a result of new contract wins with better margins, as well as the conclusion of the once-off retrenchment costs incurred in the prior period, Simeka said.
It improved its net debt position from R48m as at May 31 2010 to R28.7m.
The group repurchased 2 498 471 shares through a subsidiary company during the period at a cost of R336.84m, and "intends to continue to repurchase shares in the current year. All share repurchase programmes are subject to group liquidity and solvency tests."
Looking ahead, Simeka said: "Despite signs of a slowly recovering economy, the climate is expected to remain challenging over the next 12 to 18 months."
The group said its solid business model with strong fundamentals was expected to enable it to maintain its current performance. "The initiative to simplify and streamline the group's structure for optimal efficiency, as well as healthy cash reserves in hand, will support stability.
"In the current year, Simeka will continue focusing on nurturing existing customer relationships and contracts, reducing debt and further enhancing the group's black economic empowerment status," it concluded.
It noted diluted earnings per share of 4.25 cents, from a previous loss of 28.92c.
Revenue advanced to R411.09m from R373.7m, while turnover improved to R408.46m from R372.31m. Earnings before interest, tax, depreciation and amortisation were at R60.07m, from R50.33m in 2009.
Net margins improved from 5.9% to 7.3% as a result of new contract wins with better margins, as well as the conclusion of the once-off retrenchment costs incurred in the prior period, Simeka said.
It improved its net debt position from R48m as at May 31 2010 to R28.7m.
The group repurchased 2 498 471 shares through a subsidiary company during the period at a cost of R336.84m, and "intends to continue to repurchase shares in the current year. All share repurchase programmes are subject to group liquidity and solvency tests."
Looking ahead, Simeka said: "Despite signs of a slowly recovering economy, the climate is expected to remain challenging over the next 12 to 18 months."
The group said its solid business model with strong fundamentals was expected to enable it to maintain its current performance. "The initiative to simplify and streamline the group's structure for optimal efficiency, as well as healthy cash reserves in hand, will support stability.
"In the current year, Simeka will continue focusing on nurturing existing customer relationships and contracts, reducing debt and further enhancing the group's black economic empowerment status," it concluded.
