Ctrack performance in Europe helps Digicore achieve 111 per cent increase in profits
DigiCore Holdings Limited, parent company of leading vehicle tracking and fleet management company Ctrack, saw an increase in “normalised” profit after tax of 111 per cent for the year ending 30th June 2014, increasing to £3.15 million* (ZAR53.2m). A stronger performance in Europe had a positive impact on the results, which was driven by the improving economic climate and effects of a restructuring to drive greater business efficiencies within the European region.
The UK fleet business performed very well in the third and fourth quarters, in particular winning a number of substantial public sector tenders. The Ctrack operation in the Netherlands also experienced strong results, while growth was also achieved within Ctrack’s European distribution businesses. Meanwhile, the insurance telematics market is progressing well in the UK and mainland Europe, so improved results are expected moving forward.
Elsewhere, the Group’s investment in research and development has remained consistent at £2.86 million* (R50 million) per annum since 2012 and has resulted in a number of new products with others in the pipeline for launch. Furthermore, cash flow from operating activities increased by 42 per cent to £8.82 million* (R149.0 million) and has been used to fund investment activities and repay loan and overdraft facilities.
DigiCore was also able to maintain its global footprint through a combination of strong distributors and equity partners. In fact, new distributors were identified taking its footprint to over 50 countries and this is expected to reach 60 in 2015.
Nick Vlok, CEO of DigiCore Holdings Limited commented: “This greatly improved position has been the result of stringent cost control without affecting the bigger picture and the turnaround in our international business. The outlook for the group is positive and we have budgeted for growth in 2015 on the back of the opportunities in South Africa, prospects in the insurance telematics space globally and further improvement internationally.”
* ZAR to GBP exchange rate based on the average for the last financial year