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

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 800review