tTech closed at $4.50 on Thursday.
Profit after tax, is up to $16 million from $12.4 million for the six months and $9.2 million versus $7.6 million in 2015, but for tax expense saved in 2016, profit for the year to date would be flat. Profit for 2015 was subject to $1.4 million in taxes and for the six months, $3 million. A sharp rise in operating expenses due to a 50 percent rise in staffing, pushed the spend by 54 percent to $50 million for the quarter and 36.4 percent to $91 million for the half year.
Earnings per share ended at 9 cents for the quarter and 15 cents for the half year and should end up around the 35 to 40 cents range for the full year based on the results to date. The strong revenue gain is a signal for growth going forward for the company.
Management stated that “the increase in revenue was due to growth in all areas of our services including the Consulting Division. Increase in expenses was driven primarily by increases in our workforce to increase capacity to meet the growth in demand. At June 30, 2016 the company had 31 full-time employees compared to 21 at the same date in 2015.”
From Left: Mr. Hugh Allen, Resolution Manager and Executive Director; Mrs. Natalya Petrekin, Service Desk
opportunities for automation will be explored to facilitate increased efficiencies and improved service delivery.”
The company ended with cash and investments amounting to $115 million at June, up from $67 million at the end of December last year with net current assets ending at $130 million with payables at $34 million, while shareholders’ equity is at $146 million.
The stock traded as high as $5 on the JSE junior market today but fell back before the close to $4.50 for a PE of just over 11 times projected 2016 earnings. For investors will the strong growth continue and deliver increasing profit for them to buy and hold at these prices for long term gains.
