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06 Oct 2014VENTURES: TeleMasters Achieves Dramatic Cash Turnaround
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TeleMasters increased its cash flow from operations to R9 569 356 in the 2014 year, from a negative of R7 594 237 in the preceding nine months. Following a change in the Company’s year-end from 30 September to 30 June each year, the comparative period TeleMasters are required to include in this results announcement is the nine month period ended 30 June 2013.
Mario Pretorius, CEO of TeleMasters, says the company is extremely proud of the turnaround in its cash flow. “We saw a R17 million cash turnaround despite higher operating costs. This speaks of proper cash management and shows we now have a good grip on our expenses and margins.”
TeleMasters also posted a net profit of R2 667 430, compared to R257 080 in the preceding nine months. The company improved its profit margin to 7,5% by converting its older customer to the Digital Direct technology platform. Pretorius says TeleMasters has made a large capital investment in new technology over the past few years and this investment has now begun to bear fruit. “The new platform not only allows us to provide better quality calls to our customers, but has also contributed to our improved margins. At present we are only South African company making use of this new technology.”
Pretorius says TeleMasters has increased its sales team fourfold. “We are converting clients and adding new clients to Digital Direct and expect that we will continue to improve our profits in the coming year. With the new system in place the cost of generating additional growth will also be lower.”
TeleMasters declared a dividend of 2 cents per share in the final quarter of the financial year. Dividends paid in 2014 amount to R1,26 million. “We hope to maintain our dividends and want our shareholders to benefit from a healthy benefit yield.”
Business News Sector Tags: Ventures|
