| Thu 22 Nov 2007, 11:44 | | SPS - Spescom Limited - Spescom announces year end |
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SPS
SPS
SPS - Spescom Limited - Spescom announces year end results
Spescom Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1987/001083/06)
Share code: SPS & ISIN: ZAE000017919
("Spescom")
Johannesburg 22 November 2007
SPESCOM ANNOUNCES YEAR END RESULTS
Spescom Limited reports an 88% increase in revenue to R380m for the financial
year ended 30 September, 2007. This contrasts the R202m achieved for the same
period last year.
Headline earnings at R5m compare favourably with the 2006 headline loss of
R18m. Attributable earnings have increased to 34c per share over the 2006 loss
per share of 28,2c.
Spescom CEO, Jene Palmer, says the improvement in operations is evident across
all divisions within the group.
"Trading results have been consistently improving for the past 18 months. The
positive trend can be attributed to a more dynamic approach to the market
aimed at leveraging Spescom`s core competencies. Our focus on improving key
account management is also paying off," says Palmer.
"The call centre operation continued to be a star performer. The division
signed prominent new customers and grew by 41%. This exceeds the average
growth currently reported for the local market.
"Broadcast also performed well. We implemented a change in strategic direction
in this area from being a supplier to that of a value added integrated
solutions provider. This is yielding results. We have expanded our presence in
the Southern African region which has contributed to a doubling of revenues
from this sector."
Palmer notes the telecoms stalemate is now broken as evidenced by the rollout
of contracts. However, she cautions that trading in this environment remains
difficult due to low margin contracts giving rise to the need for high volume
orders.
Voice recording sales in the local market grew by 47%. Annuity revenue has
also grown.
Commenting on the sale of Spescom`s US operation, Enterprise Informatics,
Palmer says this is in line with the group`s decision to exit from non-core
operations.
"The R20m profit generated from the sale has enabled the group to repay its
foreign debt, subsequent to year end."
Palmer explains that as a result of loan repayments, gearing is improved as is
cash generation due to enhanced profitability.
She says that Spescom will persist in its rebuilding process.
"We will continue to invest in the group`s Intellectual Property (IP)
capabilities. The strength of our IP and product portfolio allows us to
provide customers with the means to maximize the value of voice, video and
data communications. The market clamours for these technologies and the know-
how to apply them to create competitive edge. Spescom is uniquely positioned
to meet these demands," she concludes.
About Spescom
Spescom (Pty) Ltd is a JSE listed company operating in the ICT (Information &
Communications Technology) sector. This Proudly South African Company was
founded in 1977 and during this 30 year period has delivered a number of world
first technologies, as well as innovative products and services to South
African and global markets.
Spescom consists of 4 divisions: Spescom DataFusion; Spescom DataVoice;
Spescom Telecommunications and Spescom Media IT. Through these operations the
company provides ICT infrastructure that empowers its customers with the
ability to enhance their business communications by maximizing the value of
video, voice and data communications technologies.
The company has a staff complement of 270 with offices located in
Johannesburg, Cape Town, Durban and London (UK).
For more information about Spescom visit www.spescom.com.
Issued by:
Deirdre Blain
Blain Communications
Mobile: + 27 (0)83 230 5522
Tel/Fax: +27 (0)11 462 4974
email: blain@iafrica.com
For further information contact:
Juanita van der Watt
Group Executive: Marketing and Communications
Spescom Limited
Tel: 011-266 1701
Fax: 011-2661553
Email: jvdwatt@za.spescom.com
Jene Palmer
Chief Executive Officer
Spescom Limited
Tel: +27 11 266 1526
Or: +27 11 266 1743
Mobile: +27 82 903 6757
E-mail: jpalmer@za.spescom.com
22 November 2007
Sponsor: Investec Bank
Date: 22/11/2007 11:44:17 Produced by the JSE SENS Department.
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