Logical Options (LogOpt), the JSE-listed skills outsourcing and IT consulting group, has released interim results showing marginal growth, but says it has spent the past six months in a consolidation period.
LogOpt is a provider of skills outsourcing and a supplier of IT and consulting services, and was created with the restructuring of Educor following the acquisition of Naspers` National Private Colleges.
Headline earnings increased to R40.7 million off a turnover of R601 million, up 23% on the previous period.
Headline earnings per share grew to 45.1c to 44.9c for the six months to June 2000.
CE Charles Rowlinson says LogOpt is not discouraged by the results and the company believes the 5% drop in turnover of local non-IT operations is due to a poor GDP growth and extremely tough market conditions.
"The period has been characterised by significant consolidation and strategic focus. Combined with our strong brands, we are well positioned to benefit from any upturn in the economy," says Rowlinson.
"Our focus during the period has been to look for organic growth opportunities. The current economic climate remains unconducive to acquisitions and our criteria has tightened significantly."
He believes prospects for the company are good in the medium-term. However, management expects trading conditions to remain subdued for the remainder of the year and Rowlinson does not expect earnings to be higher than those achieved from continuing operations in 1999.
The group owns 50% of listed IT company Paracon and says it is pleased with Paracon`s 39% earnings per share increase.
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