DigiCore Holdings Limited (DigiCore), the JSE listed vehicle tracking and mobile asset management company, has posted full year results to end June 2011, showing a 34% jump in revenue to R712 million. Net profit before tax increased by 15% to R78 million, while units shipped increased by 72,300, a growth of 31%.
DigiCore CEO, Barney Esterhuyzen says “the company performed well by rebounding from the recession in the past year and the improved financials reflect that. The story behind the financials, however, provides us with even more satisfaction that the company is headed in the right direction. We took a fresh look at DigiCore and introduced some structural changes to gear the business for future growth. The top management team was restructured with the introduction of new leaders in certain key positions.
“Research and Development investment grew by 27%, resulting in substantial product and service innovations being introduced to the market at even more competitive prices. Our strategy is clear – we are evolving as a leading player in the machine-to-machine communication industry by providing complete technology solutions to businesses and consumers for managing, optimising and securing vehicles, equipment, containers and mobile field workers.”
The Ctrack brand is now established in more than 50 countries as a premium Telematics brand and the Group has a base of more than 570,000 systems sold.
Material contracts won this year include, Network Rail (UK), Ekurhuleni Municipality (SA) and Rio Tinto (Africa) among others, while valued customers such as the South African Police Services, BHP Billiton and Thames Water renewed long-term contracts.
DigiCore spent considerable time and money on providing niche solutions to specific vertical markets. One highlight for the year was the partnership with Discovery Insure to launch Vitality Drive short-term vehicle insurance solutions, based on DigiCore's proprietary drive behaviour technology. This game changing solution to the short-term insurance industry is now also being rolled out by DigiCore in other parts of the world.
Considerable work has been put in by the Group to restructure and refocus international operations. Dedicated regional business HUB's were established to take command of global regions, such as Asia (Kuala Lumpur) and Latin America ( Mexico City). The operation in the United Kingdom was restructured and five new branches opened, with positive results. While the European economy is still struggling from low growth and possible sovereign debt default, mainland Europe had improved performances in the last year with a 55% increase in Net Profit before Tax.
DigiCore operations have progressed well in building our on-going annuity stream, which increased to R334 million in the past year. This brings stability from a budgeting and access to capital perspective.
DigiCore has a positive growth outlook for the year ahead.