The company’s major operating division is Huge Telecom targeting the business market with call management, alternative technology and least-cost routing services.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
CEO James Herbst said that the results were satisfactory, although there were obvious areas of disappointment.<\/p>\n
“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.<\/p>\n
“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.<\/p>\n