Johannesburg, 25 Apr 2006
Bytes Technology Group (BTG) is to pay its shareholders a 45c dividend per share after a strong year that included a profit from the JSE-listed group`s UK operation.
This compares with a 32c dividend previously.
BTG`s revenue for the 12 months to February rose 19% to R3.47 billion (2005: R2.91 billion), while operating income climbed 28% to R282 million (R221 million) before goodwill adjustment and impairment.
CEO David Redshaw says the revenue growth was aided by the inclusion of a full year`s figures from Digital Healthcare Solutions and the CS Holdings operations, as well as organic growth of 10%.
"The organic growth reflects a significant real increase in business volumes in a market where decreasing selling prices are the norm," Redshaw says.
He adds that BTG`s strategy remains one of considered growth both organically and by acquisition, and the group is well positioned to take advantage of opportunities in terms of an "inevitable" consolidation in the IT sector in SA and also for further expansion overseas.
"We intend to expand our international operations over the next few years in a careful and progressive manner, and to this end we have finalised the purchase of a Xerox trading partner to the south of London post year-end and are actively involved in discussions with further similar businesses in the UK.
"It is our intention, in close co-operation with Xerox UK, to become their largest partner in that territory," Redshaw says.
Prospects
BTG`s pre-tax profit soared from R34 million to R229 million and the group reported an attributable profit of R173 million, compared with a loss of R45 million the previous year.
The prior-year results have been restated, as BTG has adopted international financial reporting standards.
The group achieved earnings per share of 10.7c (29.8c loss), and headline earnings per share (HEPS) of 127.7c (86.4c), which Redshaw says is against the backdrop of one of the most benign economic environments for many years.
However, the group says adjusted HEPS, which excludes the effect of raising deferred tax assets, is a more representative figure of sustainable earnings. Adjusted HEPS rose from 86.4c to 109.4c.
Redshaw says the UK operations had a much better year than previously, moving from break-even to an R18 million operating profit, with the result that the international operations achieved operating income of R26 million (R10 million).
"Our South African operations had a satisfactory year with operating income increasing by 16% to R256 million from R221 million the year before," he says.
Redshaw says the board is confident the new financial year will be one of continued growth.
"Our mission remains to balance long-term growth ambitions with ongoing return to shareholders, fully justifying their confidence in the group," he adds.
The BTG share closed at 1 310c on the JSE yesterday, up 30c or 2.3% on Friday`s close. Eight deals saw 5 553 shares change hands. The average daily volume for the counter is about 110 000.
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