Datatrak’s half-yearly report to 30 June 2006 was published following a Board of Directors’ meeting held on 17 October.
During the first six months of the year, Datatrak Holdings’ turnover was Lm708,917 (2005: Lm653,883), a rise of 8.4% over the comparative period. This rise is mainly attributable to the performance of the 50% owned subsidiaries, Datatrak Solutions Limited (DSOL) and Datatrak IT Services Limited (DSERV). Both companies are responsible for the development of software and application service provisions such as the Local Enforcement System (LES) as well as providing mapping and surveying services. During the same period under review the operating costs of Datatrak Holdings plc amounted to Lm514,368, 11.7% higher than the Lm460,631 registered during the previous comparative period. As a result, earnings before, interest, tax, depreciation, and amortisation (EBITDA) stands marginally lower at Lm193,252 (2005: Lm194,549) with an EBITDA margin falling to 27.4% (2005: 29.5%).
During the first 6 months of the year, Datatrak Holdings plc incurred a depreciation and amortisation charge of Lm129,537 – a drop of 24% from the previous comparative period. This reduction has boosted Datatrak’s operating profit after depreciation and amortisation from Lm22,435 to Lm65,012. After accounting for net financing costs of Lm12,615 (2005: Lm7,517), the profit before tax is Lm52,397, significantly higher than the June 2005 figure of Lm14,918. As mentioned above, DSERV and DSOL contributed significantly to the turnover and profits of Datatrak Holdings plc. However as these subsidiaries are not wholly owned by Datatrak Holdings plc their share of profits amounting to Lm93,878 must be deducted from the net income figure. As a result, Datatrak Holdings plc incurred a loss for the period of Lm34,174 (2005: Lm20,521) reflecting a loss per share of 0c2 (2005: 0c1).
The Balance Sheet as at 30 June 2006 shows total assets marginally higher at Lm5.12 million (June 2005: Lm5.09 million) and total liabilities lower at Lm1.76 million (June 2005: Lm1.83 million) due to a reduction in long term borrowings. Total equity at the end of this reporting period stands at Lm3.36 million (June 2005: Lm3.27 million), resulting in a net asset value per share of Lm0.21. At the current share price of Lm0.31 the price to book value stands at 1.47 times.
In the 2006 Half Yearly Report the Directors highlighted the following developments:
1. With regards to Datatrak MENA Limited, the sales and marketing subsidiary that takes care of all products of Datatrak Systems Limited (DSL) and Datatrak Solutions Limited (DSOL) in the Middle East, Africa, and South America which also owns a 30% minority shareholding in Datatrak Nigeria (DNL), the Directors claimed that discussions were still ongoing to conclude the Supply and Licence Agreement in Nigeria.
2. Datatrak Solutions Limited (DSOL), the 50% owned subsidiary responsible for software development and sales to Europe, USA, Australia and Asia has continued to make progress with Datatrak Online (DOL) and Dispatch IT.
• According to the Half Yearly Report, the Datatrak Online (DOL) vehicle tracking operation in the UK has continued to achieve and surpass the targets set and that the second half of the year appear encouraging. The Directors also mentioned that work has also started on the development of an updated version of DOL which ought to increase the functionality and marketability of the service.
• Dispatch IT signed two major contracts during the first 6 months of 2006. These were with Geopost UK Ltd and Ontime Ltd. The initial contract with Geopost will cover a total of 2,000 vehicles and is worth over GBP 600,000 for the first four years. The other contract with Ontime will cover a total of 650 vehicles. In Datatrak’s Half Yearly Report the Directors claim that both these contracts will yield significant recurrent revenues.
3. According to the Directors of Datatrak Holdings plc Datatrak IT Services Limited (DSERV), a 50% owned subsidiary responsible for the Local Enforcement System (LES), the Electronic Identity Service (eID) and the mapping and surveying services has continued to register strong growth in turnover and profitability and will continue benefiting from the tighter internal controls implemented during the previous financial year. Moreover the Directors reported that:
• The number of vessels being monitored by Vessel Monitoring System (VMS) has almost doubled and that the possibilities of penetrating the international market with this product are being explored.
• Datatrak was appointed as the official installer and calibrator of Taxi Meters by the ADT. During the period February to April 2006 over 210 taxi meters were installed.