JSE-listed Faritec Holdings has reported a 148% increase in net profit to R11.04 million for the six months to December, compared to R4.45 million for the same period the previous year.
Revenue rose 28.7% to R262.93 million (2004: R204.35), while an operating profit of R12.09 million compares to a restated year-earlier loss of R0.1 million. Prior results have been restated to comply with international financial reporting standards.
A pre-tax profit of R14.98 million compares to a previous R4.91 million profit. Headline earnings per share rose to 6.7c (0.1c) and basic earnings per share climbed to 6.6c (3.2c).
The results do not include Enterprise Connection, the acquisition of which is still being finalised. That acquisition is expected almost to double Faritec`s size.
CEO Simon Tomlinson says the outlook for the second half of the year is positive, although the group does not expect to repeat the results of the first half.
"This situation is not due to an expected slowdown in the second half, but rather to an exceptional performance in the first half of the year, mainly during the second quarter." He adds that the group expects to show the growth in the second half of the year as over the same period the previous year.
"Our six-month performance can be summarised in terms of increased revenues across our primary business lines, greater focus and operational efficiency, and controlled costs. This time last year we believed we`d turned the corner from a strategic, operational and financial standpoint. Today`s results reflect that."
The hardware business grew better than expected as a result of earlier than expected receipt and delivery on certain orders. Revenue from this business rose 41% from R112 million to R159 million.
The software business grew 86% from R20 million to R38 million, mainly due to the performance of the security and business integration divisions.
However, services revenue fell 7.7% from R72 million to R66 million as a result of project delays. However, Tomlinson says these projects are now under way and the group is satisfied that this business will reach its full-year revenue targets.
The Faritec share was trading at 83c late this morning, up 7c or 9.2% on yesterday`s close, after 60 000 shares changed hands in five deals.
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