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Spescom shows overall improvement

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Spescom Limited reports an 88% increase in revenue to R380-million for the financial year ended 30 September, 2007.  This contrasts the R202-million achieved for the same period last year.

Headline earnings at R5-million compare favourably with the 2006 headline loss of R18-million. Attributable earnings have increased to 34c per share over the 2006 loss per share of 28,2c.
Spescom CEO, Jene Palmer, says the improvement in operations is evident across all divisions within the group.
“Trading results have been consistently improving for the past 18 months. The positive trend can be attributed to a more dynamic approach to the market aimed at leveraging Spescom’s core competencies. Our focus on improving key account management is also paying off,” says Palmer.
“The call centre operation continued to be a star performer. The division signed prominent new customers and grew by 41%. This exceeds the average growth currently reported for the local market.
“Broadcast also performed well. We implemented a change in strategic direction in this area from being a supplier to that of a value added integrated solutions provider. This is yielding results. We have expanded our presence in the Southern African region which has contributed to a doubling of revenues from this sector.”
Palmer notes the telecoms stalemate is now broken as evidenced by the rollout of contracts. However, she cautions that trading in this environment remains difficult due to low margin contracts giving rise to the need for high volume orders.
Voice recording sales in the local market grew by 47%.  Annuity revenue has also grown.
Commenting on the sale of Spescom’s US operation, Enterprise Informatics, Palmer says this is in line with the group’s decision to exit from non-core operations.  
“The R20-million profit generated from the sale has enabled the group to repay its foreign debt, subsequent to year end.”
Palmer explains that as a result of loan repayments, gearing is improved as is cash generation due to enhanced profitability.   
She says that Spescom will persist in its rebuilding process.  
“We will continue to invest in the group’s intellectual property (IP) capabilities. The strength of our IP and product portfolio allows us to provide customers with the means to maximize the value of voice, video and data communications.
"The market clamours for these technologies and the know-how to apply them to create competitive edge.  Spescom is uniquely positioned to meet these demands,” she adds.