DigiCore Holdings Limited, a JSE-listed vehicle tracking, fleet management solutions and insurance telematics group, supplier of Ctrack, grew profit after tax by 111% for the financial year ended 30th June 2014. “Normalised” profit after tax increased to R53.2 million from a “normalised” loss of R13.4 million in the prior year.
After being back in the CEO seat for 18 months, Nick Vlok, founder of DigiCore, and his new energetic management team are showing positive signs that the ship is definitely turning. “This greatly improved position has been the result of stringent cost control without affecting the bigger picture and the turnaround in our international business”, Vlok explained.
The group’s investment in research and development has remained consistent at R50 million per annum since 2012 and has resulted in a number of new products, including Ctrack On-the-Road, Ctrack Multi-comms and Ctrack’s Anti-jamming module that are already launched, and others in the pipeline for launch.
Furthermore, cash flow from operating activities increased by 42% to R149.0 million and has been used to fund investment activities and repay loan and overdraft facilities.
“Bad debts and obsolete stock were looked at conservatively and either written off or provided for giving a clean balance sheet,” Vlok added.
New opportunities are opening up within the South African consumer market as both the insurance and dealership industries show increasing interest in deploying more sophisticated vehicle tracking products. Likewise, the fleet environment is also expanding with the onset of interactive business intelligence and bureau reporting opportunities. “Our South African business is on a new growth path with a robust sales structure in place, significant improvement in sales activities and some substantial tenders being worked on,” said Vlok.
During the consolidation and closing of non-profitable operations, DigiCore was able to maintain its global footprint through a combination of strong distributors and equity partners. In fact, new distributors were indentified taking its footprint to over 50 countries and this is expected to reach 60 in 2015.
“The outlook for the group is positive and we have budgeted for growth in 2015 on the back of the opportunities in South Africa, prospects in the insurance telematics space globally and the turnaround in our international business,” concluded Vlok.
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