Muvoni boosted by Ideco sale

Listed group, Muvoni Technology, has reported a healthy rise in operating profit from continuing operations for the year ended August 2012, to R11 million, from R6.22 million before.

The group was helped by sale of Ideco Biometric  Security Solution at the end of 2011.

Revenue from continuing operations improved to R106 million, from R99.69 million in 2011.

Earnings before interest, tax, depreciation and amortisation (ebitda) from continuing operations showed an improvement of R5.8 million (42.4%) over the previous year.

A total comprehensive profit attributable to ordinary shareholders of R5.7 million was recorded compared to a loss of R2.4 million in 2011.

The profit of R5.7 million includes a profit of  R3.9 million, achieved by the sale of Ideco Biometric  Security Solutions, which had an effective date of 15 December 2011.

IBSS contributed R1.7 million to group profit for the period during which it was still a wholly-owned subsidiary of Muvoni.

The revenue of AFISwitch, the group’s criminal record checking service, increased by 63%, while ebitda was 105% higher than in the previous financial year, the group said.

Looking ahead, Muvoni said that AFISwitch’s services will show slower growth due to the fact that the year ended August 2012 was the first full year where the service was almost used to its full potential.

However, in the case of the rendering of the service to the Department of Transport for Professional Drivers Permits, only about 75% of applicants are using the AFISwitch service.

Muvoni said that the SAPS automated fingerprint identification system (AFIS) is being used at full capacity and therefore the group has acquired its own AFIS to ensure that sufficient capacity will be available for future growth.

MIE, a background screening firm, and wholly owned subsidiary of the Muvoni Group, is expected to continue to contribute significantly to group profits and, although still small, MIE has expanded its service into neighbouring Africa countries, which will provide further opportunities for growth, Muvoni said.

“The directors have considered the group cash flow projections and budgets for the next two years, and in light of contracts concluded and an improvement in the business sectors where the group operates, are satisfied that the group will continue to operate as a going concern for the year ending 31 August 2013,” it said.

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Muvoni boosted by Ideco sale