Our most difficult period in 15 years: DigiCore
DigiCore, the JSE-listed vehicle tracking solutions provider, says results for the year ended June 2013 “reflect the most difficult period since the group’s listing on the JSE in 1998”.
On Wednesday (25 September), the group noted that, while revenue increased by 2% to R863 million, it recorded an operating loss of R44.46 million, from a prior profit of R45.57 million in 2012.
Diluted headline earnings per share declined to 3.3 cents, from 12.7 cents, while DigiCore reported a diluted loss per share of 21.7 cents, from a prior earnings per share of 12.7 cents.
Earnings before interest, impairments, taxation, depreciation and capital items
(ebitda) rose 7% to R114.3 million.
DigiCore specialises in the research, design, development, manufacture, sales and support of technologically advanced GPS/GSM fleet management and vehicle tracking solutions.
For the year ended June 2013, the group increased the installed base by
89,228 units. This is an increase of 17% against the 76,160 units shipped for the
prior financial year.
DigiCore stressed that the business has gone through a consolidation process which included management changes, closure of the Mexico office and completion of business
development initiatives in Asia without immediate returns.
The same applied to development costs in the UK insurance market.
South Africa
For South Africa, DigiCore said that its Discovery Insure installations have risen to over 40,000 Ctrack insurance telematics systems to date.
“Strong growth is expected over coming years as the market becomes more aware of the concept of rewarding better and safer driving habits,” it said.
It added that the South African Police Service (SAPS) saw the accelerated deployment of the integrated Ctrack and emergency dispatching system to its 10111 operation
centres nationally, enhancing reaction time and service to the public.
“Development of products for SAPS is ongoing in the light of the partnership,” it said.
Outlook
Looking ahead, DigiCore said that consolidation and management changes undertaken, particularly in the past six months, leaves the board cautiously optimistic of an improved trading performance in the year ahead.
It said that with a new technology platform in place, commercialisation of its latest product and software solutions, and the investment in its sales structure, the group has already started to capitalise on opportunities in the fleet, mining, government and insurance telematics industries.
“We have recaptured lost fleet management business and trust we will continue this trend. New channels to distribute our stolen vehicle recovery products have been opened and volumes are improving,” DigiCore said.
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