Revenue increased significantly by 55% to R121 million from R78 million for the previous year and exceeded forecast by 6%. Operating profit grew by 315% to R20 million, representing approximately 16% of revenue. Headline earnings per share rose by 111% from 3.6cps (pro forma) to 7.6cps and exceeds forecasts by 9%. The growth in revenue can be largely attributed to demand from existing clients. Increased operational capacity began to come onstream and enabled the group to attract larger-scale longer-term customer contracts. Operating margin has improved due to increased efficiencies and economies of scale on larger client contracts. Cash generated from operations increased substantially from R2.8 million to R15.6 million, underpinning headline earnings while still funding increased levels of working capital.
Dividend
In line with current policy to reinvest profits to fund future growth and development, no dividend has been declared for the year.
Prospects
The R32.4 million raised on listing on AltX, will be used to fund future growth in capacity and acquisition opportunities that complement the group's existing call centre operations and support functions. Ongoing expansion of existing client contracts will be a further key driver of the group's growth. In addition, Dialogue Group is constantly securing new contract wins both in South Africa and offshore. The president's public support for reducing data and call charges should serve as a further incentive to overseas blue-chip companies to recognise South Africa as a preferred destination for business process outsourcing. This bodes well for Dialogue Group's prospects. In light of the encouraging start to the new financial year and growth from the existing client base, the board is confident that the pre-listing forecasts for the year ending 31 December 2007 will be achieved.
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