Alliance Data Corporation (ADC) practically met the profit forecast in its prospectus, reporting headline earnings of 18.3c a share for the year to 28 February, which was just off the forecast 18.5c a share.
The reported figure is also considerably up on the 13.4c a share of the previous year (calculated on the assumption that the 20 million shares in issue had been in issue last year).
ADC, which has been operating since 1997, is an open source software developer focused on the mining industry, although CEO Eugene de Kok says the company is also expanding to other target markets, the effects of which will be apparent when it publishes its 2006 results.
Revenue for the latest full year amounted to R19.72 million, up 12% on the R17.6 million of the previous year.
Pre-tax profit of R5.22 million compares with a previous R3.83 million, while the net profit was 36.4% up at R3.65 million, from R2.68 million previously.
Current assets at the end of the period amounted to R2.81 million, compared with current liabilities of R3.29 million. Cash accounted for R1.58 million of the current assets. The group`s net asset value rose from 171c a share to 189c a share, while tangible net asset value per share rose from 6.4c to 21.7c.
De Kok says the earnings increase is the result of "continued successful conclusion of contracts with mining houses, which represent up to 70% of the group`s annuity income".
One of ADC`s main reasons for listing was to raise cash to allow it to fund acquisitions.
De Kok said at the March listing that ADC had identified a synergistic acquisition opportunity and would make an announcement soon. The company is also understood to be eyeing business opportunities in Africa.
The ADC share was untraded at 117c on the JSE this morning.
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