Comparex Forecasts Solid Earnings Growth

Computergram International, August 17, 1999

Comparex Holdings Ltd, the Midrand, South Africa-based IT group specializing in server sales and network integration services, says that it plans to continue its acquisitive strategy and directors forecast that it is well placed to achieve "solid growth" in headline earnings in the foreseeable future. This follows a year in which the company, anxious to expand its presence in Europe, increased net profit by 61% to R522 ($85m) on revenue that climbed 81% to R7.6bn ($1.2bn).

Comparex says that most of the group's businesses performed ahead or in accordance with expectations. But its PQ Africa subsidiary saw a 7.1% reduction in net profit and directors say corrective action has been taken to close or sell off loss-making operations.

Its Telemation telecoms equipment subsidiary in Germany suffered when some customers decided to deal directly with equipment manufacturers. While these lost sales have been replaced by sales to other customers, it says that margins suffered during the adjustment phase.