MICROmega earnings up 87% for H1

Listed diversified investment company MICROmega Holdings (MMG) reported an 87% increase in headline earnings per share (HEPS) to 25.72 cents for the half-year ending 30 June 2012, compared to the earnings per share of 14.67 cents for the same period last year.

The company also announced attributable earnings per share up 106% to 30.32 cents per share, while also increasing revenue up 7% to R385 million, compared to the same period in 2011.

In March, MICROmega said that revenue for the year ended December 2011 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 CEO Greg Morris, said he was pleased with the results: “Our balance sheet continues to strengthen with the net asset value per share having increased by 9% to 337.82 cents. Operating margins have improved significantly over the period from 5% to 10%. This is primarily attributed to our exit from the automotive sector and our renewed focus on our traditional service based businesses,” he said.

“We have invested significantly in recent years to ensure we have both the capacity and competence to deliver sustained earnings growth. We are now seeing the benefit of this investment strategy.”

Through its subsidiary, Turrito Networks, MICROmega provides converged communications – delivering MPLS networks; hosting facilities; internet; and cloud computing services to large corporates and the SMME market.

“Our technology businesses are performing in line with our anticipated earnings forecast for this year. Our cloud computing service has received some promising traction in the first half of this year and we are optimistic that it will become an important contributor to earnings in the medium term,” Morris said.

The company reported that focus on information technology remains a priority.

Morris remained bullish about the second half of 2012 and the prospects for 2013: “The second half of the year has traditionally delivered higher levels of growth than the first half. We expect no difference this year. We are already gaining some visibility into the next financial year and we are cautiously optimistic about our prospects for 2013”.

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MICROmega earnings up 87% for H1