Technology group Telemasters says Covid-19 has not had a significant impact on its operations and is not expected to affect it in the foreseeable future.
On Wednesday, the firm reported a 6% increase in earnings per share to 2.59c for the year to June, up from 2.48c previously.
Telemasters operates in the telecoms sector and specialises in custom telecoms solutions for businesses. The primary segments it serves are voice service providers, cloud PBX service providers and internet service providers.
“Across the group we are now uniquely positioned to provide customers [with] a golden thread of critical enterprise services — ranging from connectivity to unified communications, all the way through to disaster recovery and business continuity,” said the group.
Telemasters also expects that the implementation of the Protection of Personal Information Act of 2013 “will prompt many enterprises to strengthen their data management and security systems”, which will ultimately mean more companies will be seeking more ICT services.
Revenue for the group fell by a fifth from R100m in 2019 to R79.6m in 2020. Telemasters said the decrease was as a result of “wanting to ensure spend management and an element of predictability for our customers by moving away from the traditional variable billing type of service we offered in the past and shifting our focus to subscription-based services.”
Telemasters said the shift to cloud-based services and diversification was now yielding results.
The group reported a 24.66% increase in cash and cash equivalents from R12.99m in 2019 to R16.19m in 2020.
While other companies have shied away from declaring dividends, choosing to rather preserve cash due to uncertainty brought about by Covid-19, Telemaster declared a 7.60c per share dividend for the year.
During the period, the group acquired cloud communications company Contineo for R15.15m and Perfectworx, a network systems integrator, for R1.35m.
A generally volatile stock, Telemasters shares remained unchanged on Wednesday, ending trade at R0.90, maintaining the group's R45.45m market capitalisation.
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