Interim results for the six month period ended 31 December 2007

• Operating Profit Up 61%
• Revenue Up 63%
• Earnings Per Share Up 46%

Introduction

The DigiCore board is extremely proud to announce an excellent all round performance from our subsidiaries, distributors, support divisions and branches for the six months ended 31 December 2007. We have managed to grow our turnover and basic earnings per share by 63% and 46% respectively, despite a generally tougher trading environment.

What made this growth even more remarkable is the fact that we have had compounded year-on-year growth, in excess of 30%, over the past six years.

Financial results

Our operating profit grew by 61% from R48.8 million (2006) to R78.6 million. Earnings per share increased to 23.5 cents per share opposed to 16.1 cents per share in the comparative period last year, representing growth of 46%.

Cash generated from operating activities increased to R50.0 million from R42.4 million (2006) for the period. Cash and cash equivalents decreased by R11.8 million over the six-month period mainly due to dividend and tax payments as well as increased working capital requirements emanating from aggressive sales growth.

Inventories as a percentage of cost-of-sales have decreased although the rand value increased by R17 million from June 2007. Work-in-progress over the holiday season for final production and shipment in January 2008 was one of the main reasons for this increase.

Our debtors book increased by a further R5 million during the six-month period. The average outstanding debtors days have, however, decreased by 31 days despite the fact that payment on exported products entails a relatively lengthy chain of events in our international subsidiaries.

We are continuously focusing our attention on methods of reducing the working capital requirements.

• Commentary
• Group interim Results for the six month period ended 31 December 2007 (English)
• Group interim Results for the six month period ended 31 December 2007 (Afrikaans)