Business: Huge Group Retains Profitability and Sees Growth
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Huge reported that cash flow from operations was up 306% to R60,2 million compared to the comparative 12 months – the Group’s first results since its JSE listing were for the seven months to end February 2008.
Revenue was up 9% compared to the comparative 12 months, rising to R605,8 million. Gross profit was up 27% to R125,9 million, and trading profit from operations rose 29% to R47 million. The Group’s gross profit margin was 20,8%, up from 17,8% in the previous comparative 12 months.
Net profit for the year to end February 2009 was however impacted by a number of once-off and exceptional events in the previous year which the Group detailed. Net profit was down to R7,4 million and headline earnings per share was 6,85 cents.
CEO James Herbst said that the results were satisfactory, although there were obvious areas of disappointment.
“We are operating profitably in a difficult economic environment, with revenue increasing and cash flow from operations showing very healthy growth. As this cash flow is predominantly annuity based, it is a source of confidence.
“In addition, Huge Telecom’s business has traditionally been resilient in economic downturns because companies facing cost pressures turn to us to help them save money on their telecommunications expenses,” Herbst said.
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