Datakor has healthy cash pile
Jabulani Sikhakhane
A sharp drop in the tax rate and the interest bill
helped Datakor report a 26 percent advance in earnings to
20c (15,9c) per share for the year to March.
The dividend was up 21,4 percent to 8,5c (7c).
Group turnover rose 11 percent to R498,59 million,
but margins suffered because of a 32 percent increase in
expenses. Operating profit fell 12 percent to R45,38 million
(R51,49 million).
Referring to the increase in expenses, chairman and
chief executive Nic Frangos explains that infrastructure
costs to provide enhanced services contributed to the
increase, while about R14 million was invested in the
group’s focused business units.
Mr. Frangos adds that the group was able to budget
for increased expenses because it was expecting some relief
on the tax front and also reduced interest costs in
financial ’90.
A highlight of the review period was the improvement
in cash flow which enabled Datakor to pay off in full the
interest-bearing debt of R27 million, leaving cash balances
of R4,55 million.
The interest bill was R8,9 million (R12,7 million)
and the tax rate, due to assessed losses and the lower
company tax rate, reduced to 25 percent from 46 percent. As
a result attributable earnings rose 28 percent to R28,07
million.
Unidata, the group’s largest subsidiary increased
turnover by 17 percent to R375 million, which is equal to 75
percent of Datakor’s total turnover.
Links
Nic Frangos
:: Home
Page
Nic Frangos
:: on squidoo
Nic Frangos
:: Article on blogspot
Nic Frangos
:: Article on Newsvine
Nic Frangos
:: Article on review-inc
Nic Frangos
:: Article on
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