DVT, the specialist software company which recently listed on the AltX of the JSE, has reported outstanding results for its first interim period as a listed company. It has reported revenue of R28,3-million, up from the R12,9-million for the comparable period a year earlier.
Earnings were up 171%, from R1,05-million a year ago to R2,85-million. Cash on hand increased from an overdraft position to a R5,3-million positive balance, testimony to the company's ability to generate strong cash flow. Earnings per share was 14,1 cents, but no dividend has been declared, with profits being retained to help fund growth.
"We are very pleased with our first-half performance," says DVT CEO Chris Wilkins. "All indicators are positive for us. Market conditions are buoyant, and given our management team, our track record of delivery, and our capacity to deliver, we fully expect to maintain our momentum for the next six months and for several years to come.
"Technology spend is strong, and there is exceptional demand from existing and prospective customers. Our growth prospects are particularly good in Johannesburg, while Cape Town, where our business began, continues to produce excellent profits, boosting our margins. This helped increase our overall profit margin to 14,1%, from 12,8% in the prior six-month period. Against that, Johannesburg has been the engine of our growth, and will continue to be so."
DVT has commenced its growth by acquisition strategy as it believes there is scope to consolidate some of the small and medium-sized software businesses in the market.
DVT is one of South Africa's leading software providers. Its software is provided either as a packaged product or is custom-built and tailored for specific business needs. Its packaged products offer customer care and service software, including CRM, loyalty/incentive, IT helpdesk and call centre solutions. DVT has specific skills in Microsoft technologies, has a solid relationship with Microsoft at a senior level, and is a Microsoft gold certified partner. Its goal is to become one of the largest premier providers of business applications software and services in South Africa.