The company’s revenue increased to 731.7 million rand for the 12 months ended 31 December 2013, from 746 million rand in the comparative period in 2012.
This is while gross profit also increased to 273.7 million rand from 272 million rand in 2012.
[DATA MMG:MICROmega] is a South African holding company that specialises in providing information technology, financial services, occupational health and safety, strategy and labour supply services.
“We are now well positioned to continue to grow in 2014. In prior years we exercised extreme prudence in the valuation of our intangible assets by writing them off on an accelerated basis,” the company said in a statement.
Headline earnings per share increased to 49.29 cents from 28.32 cents in the previous year.
(WATCH VIDEO: MICROmega reports rise in 2013 earnings)
“We are now adopting a conservative, but more realistic, valuation of our development in new technology and this has caused the disparity between the growth in headline and basic earnings per share,” the company explained.
Profit before tax was recorded at 77.3 million rand from 16.4 million rand, and basic earnings per share were recorded at 48.88 cents per share from 10.77 cents in 2012.
Diluted earnings per share were at 48.07 cents per share from 10.65 cents per share in the comparative 2012 period.
“We are now adopting a conservative, but more realistic, valuation of our development in new technology, and this has caused the disparity between the growth in headline and basic earnings per share,” the company explained.
Profit for the company’s NOSA segment increased to 45 million rand from 28.8 million rand in 2012, and MECS Africa segment recorded a profit decrease to 10 million rand from 188 million rand in the previous comparative period.
Profit for Sebata Municipal Solutions increased to 17.5 million rand from 5.7 million rand in 2012.
MICROmega Securities’ profit however decreased to 2.9 million rand from 9.2 million rand in the precious comparative period.
Profit for the holdings company and consolidated eliminations suffered a loss at 24.3 million rand from 41.3 million rand in 2012.
“The Group has finally emerged from the decade long negativity that had dogged us as a result of the well-publicised tax dispute between our chairman and the South African Revenue Service,” the company explained.
The South African Revenue Service, the National Prosecuting Authority and MICROmega chairman Dave King were previously embroiled in a long-standing clash, which has since been resolved.
“There is a clearly defined and strong growth focus throughout the group and executive management is committed to a long-term investment plan with a balance between strong acquisitive growth and organic growth.”