DigiCore cautiously optimistic on outlook

DigiCore chief executive Barney Esterhuyzen said the company performed well by rebounding from the recession in the past year. "We took a fresh look at DigiCore and introduced some structural changes to gear the business for future growth. The top management team was restructured with the introduction of new leaders in certain key positions.

"Research and development investment grew by 27%, resulting in substantial product and service innovations being introduced to the market at even more competitive prices. Our strategy is clear - we are evolving as a leading player in the machine-to-machine communication industry by providing complete technology solutions to businesses and consumers for managing, optimising and securing vehicles, equipment, containers and mobile field workers."

DigiCore said the key challenges and risk areas were the fears of sovereign debt default, debtors' days outstanding and stockholding needing to be reduced to improve working capital and cash, among other challenges.

In the year in focus, the company reported a 10% rise in diluted headline earnings per share to 22.2 cents from a restated 20.2 cents a year ago. A final dividend of three cents per share was declared, for a total dividend of six cents per share for the year, unchanged from a year ago.

Revenue was up 34% to R712 million and profit before tax grew 15% to R78 million. Group ebitda (earnings before interest, taxes, depreciation and amortisation) increased by 23% to R131 million.

DigiCore said new contracts won this financial year included Network Rail (UK), Ekurhuleni Municipality (SA) and Rio Tinto (Africa) among others, while valued customers such as the South African Police Services, BHP Billiton and Thames Water renewed long-term contracts. One highlight for the year was the partnership with Discovery Insure to launch Vitality Drive short-term vehicle insurance solutions, based on DigiCore's proprietary drive behaviour technology.

At 17:00, the DigiCore shares were at R2.91 on the JSE, unchanged from the previous session.