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TeleMasters keeps on growing

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Specialist tele-management and Business Communication Strategies player, TeleMasters, announced strong revenue growth in its first quarter 2008 interim results, and predicts continued positive returns.

Having listed on the Johannesburg Securities Exchange (JSE) on 12 March 2007 and outstripped its initial performance forecasts by some distance, TeleMasters' second quarter 2008 interim results see a continuing growth for the company, with revenue up by 13.76%. The Directors also declared a 6c dividend for the half-year.
“The increase in revenue results purely from organic growth and includes no additional revenue from any of our proposed acquisitions, which are in the process of being finalised,” says Mario Pretorius, TeleMasters CEO. “TeleMasters remains cash positive with a good liquidity position. Although R9,9m was disbursed through tax and full year dividends – which did not feature in the previous period – cash is comparatively lower by only 2,37%. The company remains ungeared, profitable and cash generative.”
TeleMasters' enjoyed a strong entrance into the JSE with a very positive set of initial results.  The company achieved much of this success through a guaranteed ability to cut costs in all technical and logistical environments, offering key telecoms savings for organisations ranging widely in size. Currently one of the fastest Business Communication Strategy companies in South Africa, TeleMasters was established in 1996. After 10 years of operation it has accumulated 2 800 clients, is staffed by a compliment of 26 employees and supported by a network of 198 active dealers, reinforcing strong reach across South Africa.  
“The results for the same period last year detailed numbers from when TeleMasters was a non-listed company,” says Pretorius. “Subsequent to those figures, STC payments on the 40% dividend paid have had an impact on our 2008 first quarter figures, while the second quarter is keeping with our positive trajectory thus far.”
The current results reflect a net profit of 11, 21 cents per share, after the STC paid on the company's maiden annual dividend, declared at 30 November 2007, is factored in. TeleMasters ' dividend yield is one of the strongest on the exchange at 8.5% – after a 12c payout for 2007. The latest declared dividend is in keeping with TeleMasters intention to maintain its stated 40% annual dividend payment.
TeleMasters performance is substantially up from its first Quarter results. The combined half-year reflects a slight decrease in profit compared to the unlisted period before. “Traditionally the third and fourth quarters are the most profitable period; trading conditions from May to September are largely uninterrupted, although our EPS for the comparative period is 15% lower, we are confident that we will meet our expectations
“We do experience some challenges with regards to the weight of regulatory requirements, given that high dividend paying companies suffer the most,” says Pretorius. “Nevertheless, our bottom line is as strong as it's always been, and the numbers reflect the general vibrancy of the company.
“This business communication segment of the South African economy holds strong prospects over the short and medium terms, even though the global economic outlook is challenging and the local outlook complicated by issues such as load shedding,” he adds. “Looking forward we'll continue to focus on ensuring that we grow our reputation and ability as a strategic business communications partner.
"This strategy has served us extremely well and we believe will continue to drive our growth over the long term. We have completed our acquisition of Motion telecoms and are within weeks of finalising the Marketel deal – both which will have a positive impact.”