Automotive electronics group Control Instruments (CI) has seen a drop in its headline earnings per share for the year to December, largely due to its exposure to technology ventures.
CI has posted a drop in headline earnings per share for the year to December from 13.1c to 6.7c, despite its core business of automotive electronics seeing significant growth in its segmented headline earnings per share from 11.3c to 18c.
The company posted a 41% increase in revenue to R205.4 million (1999: R145.4 million) and net profit of R14.4 million (R13.1 million).
Speaking at the announcement of the group`s year-end results in Johannesburg, CI MD Richard Friedman said the results must be reviewed from two perspectives - the core electronics and fleet management operations, and the group`s investment in IT-related businesses.
"With regards to our core business, all these areas were profitable in the year under review. This sector`s operating profits rose by 115% to R15.8 million off a 57% increase in revenue to R180 million," said Friedman.
During the year in review, CI posted a R13 million profit on the disposal of investments and operations, largely from the sale of its interest in Matrix Vehicle Tracking, as well as a portion of its shares in Nasdaq-listed Cellpoint.
The year also saw the group in an advanced stage of selling a 50% interest in its IT interests to a technology fund to be managed by Cycad Financial Holdings.
"Unfortunately, the transaction could not be completed, but the group is actively investigating alternative strategies to unlock shareholder value through these IT investments," said Friedman.
Its current IT investments are in Data Pro Services (Internet service provider services), The E-mail Corporation (e-mail marketing and advertising), Freight Online (business-to-business application for the transport industry) and San People (specialised connectivity solutions).
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