JSE AltX-listed software and services group Dynamic Technology Holdings (DTH) has declared a maiden dividend of 3 cents per share after growing its attributable earnings by 44,9% to R8,7-million for 12 months ended 28 February 2009.
Revenue grew 39,6% to R81,8-million with an increase in operating profits from R8,1-million to R10,7-million. These results exceeded the profit after tax forecast as published in the pre-listing prospectus (dated 29 October 2007) by 3,6%.
The results were positive all round with headline earnings per share rising 24,1% to 17,5 cents per share; total assets growing by 28,8%; tangible net asset value per share soared by 47,3% to 45,2 cents per share; and cash on hand increased to R13,8-million.
"It has been very satisfying to deliver the second year of results we promised in our listing prospectus," says Chris Wilkins, CEO of DTH. "Especially given the negativity in the local and global economy. It is particularly pleasing in that we also made a significant investment in management capacity to drive future growth. In addition, we also had to contend upward pressure on salary inflation and downward pressure on customer pricing.
"For the 12 months ahead, we are cautiously optimistic," says Wilkins. "Customer demand for skills continues to exceed supply, despite the pressure on margins. Going forward, we will expect to continue to grow by maintaining a good pipeline of opportunities; retaining key staff; holding onto our large, strategic clients; adding depth to our management team; and building on the momentum we achieved through 2008 and early 2009. It is still difficult, however, to say whether prevailing negative sentiment will curtail our prospects as we head into 2010.
"We have increased our reach into the medium-sized sector of the market through flexible pricing policies. This has a very positive influence on our business model by encouraging efficient business practices and a dynamic approach that is better placed to accommodate different market segments and uncertain trading conditions."
In the 12-month fiscal, DTH completed its acquisition of legal practice management specialist Emerald Consulting; Wilkins reports that this investment has already paid for itself. The other acquisition since listing, Offline Digital, "is a perfect fit with the rest of the group, and is performing in line with expectations".