Specialist telecommunications company TeleMasters has taken a head-on approach to the global downturn, expanding its sales force and upping the performance culture across its operations, with great effect.
Since listing on the AltX exchange in March 2007, the company has delivered exceptionally strong results, much to the satisfaction of shareholders. Since listing, the company has made six dividend distributions.
Reaffirming the success of the company's aggressive approach to the downturn, TeleMasters was recently listed as the top performer on the Red Hot Penny Shares portfolio, with an impressive 18.64% growth. The portfolio describes the TeleMasters share as a 'charging bull', much to the delight of up-front CEO Mario Pretorius.
“When you consider we were the first company in the country to attempt to offer monthly dividends to shareholders [the company was eventually forced to compromise with quarterly dividends due to regulatory issues] and when you consider our largely debt-free position, yes, I think charging bull is pretty apt. We've been very aggressive in dealing with the downturn and I think the market is recognising the results of that aggression.”
While TeleMasters ventured down the acquisition path towards the end of 2008, its strong performance comes only partly thanks to acquisitions. The company's focus on ensuring high service levels across its existing client base and on the optimisation of revenue streams through an aggressive revenue enhancement programme directly impacted on gross profit percentage, which at February 2009 had increased from 12.8% to 14.4%, quarter on quarter.
TeleMasters' recent annual report, covering the period up to September 2008, included the following growth highlights:
* Revenue up by 18.75%
* Operating profit (before tax) up by 34.76%
* Earnings per share up 23.75%
* Dividends per share of 24 cents
So, what next for the charging bull?
“We'll stick to our strategy,” says Pretorius. “We'll look to retain our strong cash positive position, and look to explore the opportunities inherent in the downturn by upping our services levels and general delivery within the sector. Shareholder value continues to be the watch word.”
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