Foneworx has increased its revenue for the six months ended 31 December 2008 by 12,5% to R39,4-million compared to R35-million for the same period last year. Gross profit has also grown from R19,6-million to R23,1-million, an increase of 17,6%.
Profit after tax for the period grew by 24,2% to R8,7-million from R7-million. Earnings per share did not display the same growth as a result of the issue of 20 333 612 shares to Kabo Capital prior to the start of this financial period, which increased the weighted average number of shares, thus diluting earnings per share.
The increase in revenue can largely be attributed to the group`s Business Services which continue to show good growth. In addition, improved margins from both the Infotainment Services and Business Services have contributed to the bottom line.
The group's cash position improved to cash on hand of R55,5-million compared to R25,5-million in the previous corresponding period, which represents an increase of 117,6%. The group remains debt free, except for short-term finance for vehicles and capital equipment, and a ten year bond of R9,2-million on the head office building in Randburg.
During the period under review the staff complement was increased to cater for the development of a number of new solutions resulting in an increase in staff expenditure of 18.9% when compared to the previous corresponding period. This expenditure was essential for the group to continue to support and enhance existing services reflecting growth as well as the introduction of new services.
The operating space at the group`s head office was doubled as the company acquired ownership of the remaining 50% of the building to cater for new training facilities and its new Disaster Recovery and Work Continuity offering.
Similarly with the additional space, investment in capital goods increased which resulted in a 54% increase in depreciation charged for the period.