Related Articles
Top Stories
May 25 2012 19:13
Uncertainty over the future of the euro zone returned to push the rand down against the dollar.
May 25 2012 13:58
The costs of the first phase of the Gauteng Freeway Improvement Project have increased significantly to almost R90bn, according to a report.
May 25 2012 11:36
The JSE has identified and stopped "incorrect" trades from one of its members, and will reverse the trades and lower the session's total value after the close.
Johannesburg - Computer servicing group Spescom is on the road to recovery after those divisions hardest hit by the recession clawed back gains, according to the firm's latest set of full-year results.
During the period under review, Spescom's revenue was relatively unchanged from last year at R362.7m, although profit was up 16% to R8.7m.
The group's headline earnings per share rose 24.5% to 12.7c and its net asset value per share was up 26.8% to 108.8c.
Spescom managed to generate cash from operations to the tune of R33.8m up 23.1%, and net finance charges were reduced from R1.8m (2008) to R398 000. However, the firm chose not to declare a final dividend and instead opted to reinvest the cash it generated.
The group's MediaIT and Telecommunication divisions helped "dampen the effect of the slowdown, which impacted the flow of new projects in Spescom's other divisions [DataVoice and DataFusion]", the company said in a media release.
Commenting on the results, Frost & Sullivan analyst Spiwe Chireka said: "The turnaround of Spescom may be here at last. Revenues are unchanged and we have seen positive results from divisions such as Spescom MediaIT and Telecommunications, which are primarily part of the company's Europe and United States operations."
SADC offers opportunities
Much of the gains made in MediaIT and Telecommunications can be attributed to the firm's forays into the Southern African Development Community (SADC). According to Spescom, "MediaIT delivered a strong performance with 48% revenue growth as it reaped the benefits of its business development activities in the SADC region."
In particular, the MediaIT division - which supplies the broadcast industry - stood to gain from deals entered into with Mauritian and Namibian broadcasters.
Opportunities in the region also fell to the firm's telecommunications operation, as initiatives similar to that of the Seacom undersea cable providing high capacity bandwidth come online in the medium term.
"This is set to unlock opportunities in the SADC telecommunications industry," said Spescom CEO Jene Palmer. "Spescom has identified prospects in broadcasting which it is well positioned to convert into revenue in the medium term."
On Thursday morning Spescom was 17.31% higher on the JSE at 61 cents per share.
- Fin24.com