Mix Telematics hits R1bn sales barrier

Mix Telematics, a listed provider of vehicle tracking solutions has on Monday (11 June) reported a 14.8% rise in revenue to R1.02 billion for the year ended March 2012.

“The 2012 financial year has been outstanding for the Mix Telematics Group. We broke through the billion-rand sales barrier for the first time, while our after tax profits exceeded R100 million – two fantastic milestones,” stated CEO Stefan Joselowitz.

Operating profit grew to R146.38 million, from R117.18 million in 2011, while adjusted headline earnings per share increased by 33.3% to 18.8 cents per share.

Mix Telematics declared a dividend of eight cents per share, a rise of 33% from the prior period.

Earnings per share increased by 44% to 15.7 cents per share, with earnings before interest, taxes, depreciation, and amortization up 19% to R238 million.

“We maintained and improved on the momentum that we established in the first half of the year and finished the year with headline earnings growth of over 40% – a great achievement,” the CEO said.

The company lead noted that most of the group’s regional businesses performed ahead of plan, with the US operation making progress in the implementation of the mega-deals that it won last year and showing top-line year-on-year growth of over 200%. “This business finished in the green for the first time with EBITDA of R13.5 million, Joselowitz said.

Revenue for the UK/European business declined. “This does not paint a balanced picture of the performance during the year and we in fact did deliver reasonable subscriber growth even in the midst of very tricky trading conditions,” the CEO said.

He said that the Middle East and Australasia business performed well through turbulent conditions.

“The political upheaval in the Middle East region did cause our Dubai-based outfit some disruptions yet despite this, the business showed top-line growth and in the latter half of the year, signed two significant deals with oil and gas multi-nationals which will contribute to earnings in future years.

“Our operations in Australia have been ideally placed to take advantage of the resource boom and we expect to see continued strong growth from this region,” Joselowitz said.
In Africa, the Fleet and Consumer businesses have grown to a point where dedicated focus on each sector is required.

As a result, Joselowitz said he has made some structural changes with the appointment of two new executives.

“Brendan Horan is now heading up the consumer business and Gert Pretorius is running point on our African fleet operation. Both Brendan and Gert have managed various portfolios within our group over the past several years and know the industry well. Riette Botha has a wealth of experience and is now working on various projects including globalisation of our consumer business,” Joselowitz said.

Mix said it was starting to see payback from efforts north of the borders, earning ‘great orders’ from multi-national owned fleets operating in East Africa. The group recently opened a permanent sales office in Uganda to aid its expansion plans in the region.

“Our consumer and stolen-vehicle-recovery (SVR) business and home of the leading Matrix brand was flat at the revenue line although the team did deliver modest subscriber growth. The main reason for the EBITDA decline was due to the investment in our major new product, “Beam-e”, that we believe will position the Group to compete in the high-volume low-cost end of the SVR market – a space that we haven’t traditionally played in,” Joselowitz said.

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Mix Telematics hits R1bn sales barrier