Vehicle tracking company have had a record-breaking year
FOR IMMEDIATE RELEASE / PRURGENT
The DigiCore has announced another record breaking set of results for the year ended 30 June 2008. With the successful continued implementation of global contracts with blue chip customers all our divisions, subsidiaries and distributors have performed well, allowing the company to grow revenue by 55% to £44.1 million (2007: £28.4 million) whilst attributable earnings rose 59% from £5.7 million in the previous year to £9.0 million for the current year. This remarkable achievement is on the back of seven consecutive years of excellent growth.
During the year under review DigiCore increased its shareholding in the subsidiary in the UK (DigiCore Ltd) from 50.1% to a wholly owned subsidiary with the effective date of the transaction being 1 July 2007. The cost of the transaction was £2.7 million which was part settled in cash and shares to be issued on achieving profit warranties for the years 30 June 2008 and 30 June 2009.
The operating profit increased by 52% to £13.1 million from £8.7 million in 2007, remaining at an unchanged 30% mark of revenue for the year. In order to support the operational growth, DigiCore has continued to invest in the development of technology and staff complement in order to deliver superior and innovative C-track Mobile Asset Tracking, Management and Information Solutions for vehicle owners globally.
In this tougher trading period cash generated from operating activities increased by 117% from £3.3 million to £7.3 million at June 2008, whilst cash and cash equivalents increased by £3.2 million to R6.9 million at the end of June 2008.
Nature of business
DigiCore is a leading provider of innovative Mobile Asset Tracking, Management and information Solutions for vehicle owners, globally. The company supplies superior vehicle tracking solutions ranging from a basic track and trace product used to recover stolen vehicles (although still being interactive with the client), to complete integrated enterprise level solutions for large fleet owners such as the Royal Mail (UK), the South African Police Service, eThekwini Metro, BHP Billiton (global) and many others.
Local operations
DigiCore’s South African companies consist of divisions focused on the design, development and manufacture of our products, the sales and support regarding the management of fleets and the recovery of stolen vehicles (SVR). All three divisions have grown substantially during the year.
DigiCore Fleet Management (DFM) maintained its position as the number one service provider in South Africa and added several Blue Chip companies to its customer base during the last financial year.
On the SVR front the company has made inroads into various car dealerships and insurance brokers which are the major sales channels for these products. These initiatives will be the launching pad for next year's growth in the SVR sector. Although this market is challenging DigiCore is confident that we will soon capture a sizeable portion of the new monthly installation requirements.
International operations
The number of units exported grew by 60% during the year to 52,617, representing 50% of DigiCore’s production. The company has not only maintained it ground in established markets, but have seen good expansion in the Middle East and Nigeria during the past year.
The world-wide investment in training people, support and commitment to distributors, is paying off. The two wholly-owned subsidiaries, DigiCore Ltd in the UK and DigiCore Europe, based in Holland, performed well. In the UK, DigiCore has a leading position in the utility company sector with customers including the Thames Water, Severn Trent Water, nPower, Southern Water and Yorkshire Water.
In Pakistan DigiCore maintains a number one position as the SVR company of choice with the largest customer base.In the UAE, customers like the Abu Dhabi and Sharjah Municipalities, DHL as well as the Dubai Police, have given the company a solid base for future expansion, whilst in Nigeria a national order from Chevron, as well as a joint marketing campaign with MTN for the SVR products, have made Nigeria DigiCore’s fifth biggest export market.
The future
Amidst market pressure and a general slowdown in the world economy, DigiCore is optimistic that the year ahead will again be a good year as the company is continuing to not only roll out contracts won during 2007 but adding large fleet owners including Government departments to the client base as they all need to increase their efficiencies.
With new innovative products soon to be launched, DigiCore aims to remain ahead of global competitors to allow it to take full advantage of the needs of vehicle owners to reduce their cost and protect their assets at the same time. Moving some production abroad this year will also have the positive effect in reducing production costs. With the expansion of our international team, we are looking forward to growing our exports again in the coming year. Annuity income growth models will also remain high on the agenda.
About Digicore
Digicore (http://www.digicore.co.uk) works in partnership with its customers to develop solutions that deliver measurable business and operational benefits by providing total visibility and control of mobile assets and mobile work forces. They are one of the leading vehicle tracking specialists in the UK.
For further information, please contact:
Tom O’Connor
Digicore
info digicore.co.uk
Tel: +44 (0)20 8515 2900
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