MICROmega sees 14% rise in annual revenue

Listed diversified investment company, MICROmega Holdings (MMG), on Monday  (March 5, 2012)  announced a rise in headline earnings per share to 20.94 cents for the year ended December 2011, from 16.46 cents.

Revenue advanced to R775.48 million, from R682.31 million in 2010, while revenue from continuing operations improved to R690.99 million, from R547.78 million before.

MICROmega announced a pre-tax profit of R8.424 million, down from R11.74 million, with profit for the year up to R11.83 million, from R7.81 million.

Net asset value per share increased by 4.5% to 307 cents, the group said.

It said the results for the year reflect the impact cost of the restructuring of the group that was announced last year. “This entailed the disposal and closure of non-profit contributing businesses, and a refocus of our investment into information technology and our traditional support service operations.”

Discontinued operations reduced headline earnings by R17 million (18 cents per share). This was the financial cost of losses incurred by these businesses, as well as the cost of closure or disposal.

The group confirmed that the full impact cost of the disposal and closure of these companies has been fully accounted for with no further costs expected in the 2012 financial year.

“On the whole we are satisfied that the restructuring undertaken in 2011 has resulted in a portfolio of good businesses with solid market traction. Our acquisitions and development of new products and services has, in past years, primarily been funded out of retained earnings. Our realigned portfolio will be more cash generative and thereby place the group in a position to commence the payment of dividends,” MICROmega concluded.

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MICROmega sees 14% rise in annual revenue