|Mobile asset tracking solution provider Digicore on Wednesday reported a 52,7% increase in full-year net profit to R146,25-million.
Headline earnings rose by 51% to R132,27-million, the JSE-listed company said in its results announcement for the year ended June 30, 2008.
The improved performance came on the back of seven consecutive years of growth, and Digicore said it was optimistic that the year ahead would be another â€œgood yearâ€, despite market pressure and the general slowdown in the world economy.
The company said it would continue to roll out contacts won during 2007, and adding new clients to its base.
Digicoreâ€™s South African operations consisted of divisions focused on the design, development and manufacturing of its products, and sales and support regarding the management of fleets and the recovery of stolen vehicles.
During the year under review, Digicore Fleet Management added several blue-chip companies to its customer base.
The company stated that its stolen vehicle recovery division made inroads into various sales channels, and although the market was very competitive, the company was confident it would capture a sizable portion of the new monthly installation requirements.
Digicoreâ€™s international markets have seen an expansion into the Middle East and Nigeria that has seen solid growth in a customer base, and has also turned Nigeria into the companyâ€™s fifth-biggest market.
â€œWith new innovative products soon to be launched, we aim to remain ahead of global competition to allow us to take full advantage of the needs of vehicle owners to reduce their cost and protect their asset at the same time. Moving some of our production abroad this year will also have the positive effect in reducing production costs,â€ the company affirmed.
During the year under review, Digicore increased its shareholdings in its UK subsidiary from 50,1% to a wholly owned subsidiary. The cost of the transaction was about R42,2-million, which was part settled in cash and shares, to be issued on achieving profit warranties for the financial years 2008 and 2009.