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Johannesburg - DigiCore’s results for the year ended 30 June 2013 reflected the group's most difficult period yet since its listing on the JSE in 1998, said CEO Nick Vlok.
The firm showed a 2% increase in revenue to R863m.
Earnings before interest, impairments, taxation, depreciation and capital items (EBITDA) rose 7% to R114.3m.
However, goodwill write-off in the European and the UK market of R57.2m and a 60% increase in depreciation and amortisation charges - including R15.3m in intangible assets under development and R61.9m related to rental stock – has resulted in a net loss of R52.1m.
Headline earnings fell to 3.3c a share from 12.7c in 2012.
“Reflecting the most difficult period since the group's listing on the JSE in 1998,” said CEO Nick Vlok.
“But the figures are probably not a true reflection of what is going to happen going forward,” he added.
Vlok expects the group’s turnover throughout the world to pick up, particularly in the Australian market, where the group now settled down.
“The knock in turnover that we saw in the South African stolen vehicle market has been addressed, unit sales have started picking up again and we’re confident that that will continue.”
“We have invested another R13m into the South African, UK and Australian insurance markets. And now that the Discovery model has been changed, we think it’s going to work very well.”
Dicore’s cash performance is a further cause for optimism.
Cash inflows from operations increased by 63% to R104.5m. Cash outflow from investing activities reduced by 24% to R96.0m. Resulting in a positive cash flow of R8.5m in 2013 - as opposed to a negative cash flow of R61.8m in 2012.
The group’s UK and European operations reduced losses this year by 70% and are expected to be profitable in 2014. Asia and the Middle East are also expected to be profitable in 2014. While the outlook for Australia and New Zealand is said to be “extremely positive”.
Mega Fortris Ctrack have opened an office in China as a distributor.
“Although not reflected in the results, I believe we have rectified and achieved a lot in the last six months that will affect 2014 positively,” noted Vlok.
Meanwhile, Digicore’s net tangible asset value has increased to 157.0c a share from 138.9c in 2012.
- Fin24
The firm showed a 2% increase in revenue to R863m.
Earnings before interest, impairments, taxation, depreciation and capital items (EBITDA) rose 7% to R114.3m.
However, goodwill write-off in the European and the UK market of R57.2m and a 60% increase in depreciation and amortisation charges - including R15.3m in intangible assets under development and R61.9m related to rental stock – has resulted in a net loss of R52.1m.
Headline earnings fell to 3.3c a share from 12.7c in 2012.
“Reflecting the most difficult period since the group's listing on the JSE in 1998,” said CEO Nick Vlok.
“But the figures are probably not a true reflection of what is going to happen going forward,” he added.
Vlok expects the group’s turnover throughout the world to pick up, particularly in the Australian market, where the group now settled down.
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“The knock in turnover that we saw in the South African stolen vehicle market has been addressed, unit sales have started picking up again and we’re confident that that will continue.”
“We have invested another R13m into the South African, UK and Australian insurance markets. And now that the Discovery model has been changed, we think it’s going to work very well.”
Dicore’s cash performance is a further cause for optimism.
Cash inflows from operations increased by 63% to R104.5m. Cash outflow from investing activities reduced by 24% to R96.0m. Resulting in a positive cash flow of R8.5m in 2013 - as opposed to a negative cash flow of R61.8m in 2012.
The group’s UK and European operations reduced losses this year by 70% and are expected to be profitable in 2014. Asia and the Middle East are also expected to be profitable in 2014. While the outlook for Australia and New Zealand is said to be “extremely positive”.
Mega Fortris Ctrack have opened an office in China as a distributor.
“Although not reflected in the results, I believe we have rectified and achieved a lot in the last six months that will affect 2014 positively,” noted Vlok.
Meanwhile, Digicore’s net tangible asset value has increased to 157.0c a share from 138.9c in 2012.
- Fin24
