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DVT boosts profits 88%, revenues 62%

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JSE AltX-listed DVT Holdings has reported strong maiden results, with a 61,6% increase in revenues for its financial year ended 29 February 2008. For this period, it grew revenues to R58,6-million, compared to R36,3 million for the same period a year earlier.

The group, one of the fastest growing software groups in South Africa, has grown operating profits 87,6%, from R4,3-million a year ago to R8,1-million for fiscal 2008.
Earnings grew 100,3%, from R3,009-million to R6,029-million, or 18,3 cents a share, assets increased 133% to R33,4-million, and cash on hand increased R10,1-million.
"These earnings are in line with what we committed to in our prospectus when we listed last year," says DVT CEO Chris Wilkins. "Our growth has been largely organic in nature. Despite the economic downturn, our prospects for the next 12 months look good, with strong demand for our skills, products and services.
"We've laid the foundation for growth for the next two years, significantly strengthening our senior management. We've brought in a number of senior people, who have rapidly grown into their roles, which sets us up well for the next few years."
Key here was the appointment of Microsoft South Africa's Ashley de Klerk to the role of chief operating officer.
During its maiden period as a listed company, DVT acquired majority shareholding in Cape-based Offline Digital, which has taken the group into the content management space.
"This was in line with our stated strategy of growing organically and through acquisition," says Wilkins. "Offline Digital gives us greater traction in the software product area, and complements our services portfolio. We expect to do at least one more material acquisition in the next 12 months."
Other highlights in the 12 months were bringing the Gauteng operation to parity with that of Cape Town, and adding three long-term key clients.
"By doubling our key client base, we have diversified our annuity revenue stream and reduced our exposure to risk, while with 60 staff and growing market share in Johannesburg, we are on the way to fulfilling our strategy," notes Wilkins.
In line with group policy, no dividend was declared, with earnings being retained for growth.
DVT was formed a decade ago by Wilkins and other directors in Cape Town, with a specific strategy of addressing existing shortcomings in the software development market. It has since grown to be a nationally represented group. DVT is 30,7% black-held, and is actively working to boost compliance with all pillars of the BEE scorecard. The group listed in November last year, raising R12,5 million for the purposes of acquisition and to raise working capital.
DVT is closely aligned with Microsoft, being a Microsoft Gold certified partner. Its software offerings include customer care and service software, including CRM, loyalty/incentive, IT helpdesk, call centre solutions and content management. In addition, it provides outsourced software services to the corporate market.