The UCS Group has reported a 15% increase in revenue for its latest financial year, with a 29% annuity recenue and 22% return on equity.
John Bright, CEO of UCS Group, comments: "The year under review has been marked by an extremely volatile global and domestic trading environment, in particular for speciality retail focused businesses like UCS. Despite this, we have produced an acceptable trading performance marked by our Software Division showing solid revenue growth and margins improvement.
"Strategically, good progress was made on the development of a value-added services unit within the solutions division through the acquisition of interests in 4Life Program and Computer Software Consultants.
"Internationally, the acquisition of Aquitec into the Software Division provides us with an established footprint in the UK and US where, despite difficult economic conditions, we are confident that we'll be able to leverage our lower cost base to successfully develop an international retail solutions offering.
"Although UCS group is well placed strategically and operationally to continue its growth momentum, the current global and macro-economic environment, will see the Group continue and increase its focus on the creation of sustainable annuity revenue streams during a time when new sales will no doubt come under pressure."
Overall, UCS Group recorded a 14,5% growth in revenue to R1,22-billion , an 11.2% growth in normalised EBITDA to R195-million representing 15,9% of revenues and a
16,1% increase in normalised PBIT to R130-million representing 10,6% of revenues.
Organic revenue growth for the year amounted to 10,1%, with the balance of 4,4% attributable to current year and prior year acquisitions. Excluding the effects of these acquisitions, normalised EBITDA grew 5,8% to R181-million, representing 15,4% of revenues and normalised PBIT grew 10,9% to R122-million, representing 10,4% of
Headline earnings per share declined by 8% to 31,9 cents, largely due to the increase in the interest and tax expense as well as the increase in the weighted average number of shares in issue in comparison to the prior year.