MiX delivers maiden interim dividend
MiX Telematics, a listed provider of vehicle tracking solutions, on Monday (12 November) reported a 20.3% rise in revenue for the six month period ended September 2012, to R564 million.
The group declared its first interim dividend of 4 cents per share.
Group CEO, Stefan Joselowitz, heralded a dramatic rise in subscribers over the reporting period. “The MiX group has got off to a fantastic start for this financial year. We have seen top-line growth continue to accelerate. For me, the most exciting number is that we grew net subscribers by more than 40,000 over the past six months, double the growth in the comparative period.
“This is a sure sign that the long-term strategic projects and technology investments that we have been making over the past years are really starting to pay off,” he said.
Operating profit of R76 million was up as much as 60.8%, with an adjusted headline earnings per share of 9.3 cents 43.1% better than in the same period in 2011.
Joselowitz said that annuity revenue remains one of the group’s key performance measures, growing to R324 million up from R282 million as at September 2011, and now representing 57% of total revenue.
“Frankly, I am disappointed with our cash performance for this period. The group generated cash from operations of R66 million for the half-year period. This is R10 million less than the 2011 comparative period. In accounting speak we could say that we have invested heavily in additional working capital but I am not an accountant.
“The reality is that we were ineffective in following up on some slow payments from a handful of large debtors. Although we have made good progress in rectifying this situation in October, we intend to make sure that we don’t let ourselves down again going forward,” Joselowitz said.
Foreign revenue grew to R276 million for the half-year period, up from R214 million as at September 2011, and represents close to half of total revenue, MiX said.
Looking ahead, the chief executive said that while the group had enjoyed a great start to the year, “I must confess that we remain nervous about the economies in some of the key territories in which we operate. Of particular concern is the Eurozone where we are experiencing very tough trading conditions.
“Trading conditions aside, we believe that we have the talent and technologies to meet our medium-term objectives. Once again, I would like to extend the Boards and my deep appreciation to our fantastic employees for their superb efforts over the past six months,” he said.
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