What's New
MiX Telematics announces pleasing results for year ending 31 March 2010
08 June 2010
MIX TELEMATICS DECLARES DIVIDEND DESPITE TOUGH MARKET CONDITIONS
- Dividend increased by an impressive 25% to 5 cents per share
- Revenue R840 million – R477 million annuity and R379 million foreign currency
- EBITDA R160 million
- Adjusted HEPS 12.8 cents
- Cash generated from operations R175 million
- Net borrowings reduced by R41 million to R48 million
Despite market conditions being tough, particularly in the first six months of the year, we decided to declare a dividend of 5 cents per share on the back of strong cash generation.
Stefan Joss, Chief Executive Officer of MiX Telematics, says: “We are pleased to be offering our shareholders a better than inflation return on their investment. Notwithstanding the decline in our profits, the fact that we have increased the dividend is a testament to the quality of this Group’s earnings.”
Financial Review:
MiX Telematics is a global Group with 7 international offices servicing customers in 111 countries and employs over 700 people. Joss, explains that as a consequence of being a global company, “MiX Telematics is a Rand-hedge investment and as a result, the strengthening of the Rand has had a negative impact. We estimate the adverse impact of the strong Rand on our revenue to be about R63 million and the subsequent negative impact on our earnings to be about R18 million. This translates into about 3 cents per share.”
Annuity revenue, which Joss describes as the cornerstone of MiX Telematics’ business, is up 14% on the same period last year to R447 million. In light of the strong Rand, an 11% fall in foreign revenue was reported by the Group, against the previous comparative reporting period. Although lower than last year, the Group again enjoyed a strong cash flow, with cash generated from operations amounting to R175 million and a reduction in the net debt position from R89 million in 2009 to R48 million.
The overall effect of the strong Rand and combined with tough trading conditions resulted in basic EPS down 4.7% from 10.6 cents per share to 10.1 cents per share and adjusted HEPS down 19.5% from the previous year to 12.8 cents per share.
Prospects:
Joss says, “We have navigated relatively unscathed through this tough trading period and emerged in a stronger position, with our order pipeline in a much healthier state than 12 months ago.”
Joss concludes that management is adopting a cautious approach given the economic environment, but that the Group is already seeing exciting new developments and an upturn in certain key areas of the business which should benefit MiX Telematics going forward.
