Mincom reported a profit before tax for the six months ended 31 December 2005 of $6,510,000, compared with a profit of $151,000 in the previous corresponding period. The strong first-half performance was driven by an 18% increase in sales revenue to $92,481,000.
"Our growth is a direct result of increased sales to large off-shore customers who understand how our products and services can facilitate the business outcomes which they are looking for," said Mincom CEO, Richard Mathews.
The general improvement in the IT market has continued in the first half of 2005/06, when demand was particularly strong from the mining sector, which has been enjoying high commodity prices. This demand contributed to an increased call for consulting services for both local and global rollouts of Mincom products.
Mincom's after tax result was equally impressive with profit after tax of $4,877,000, compared to a loss of $1,015,000 in the previous corresponding period.
The improvement in performance included a 3% increase in research and development (R&D) spending to $8.9 million as Mincom continues investing in business solutions for its customers. Mincom adopts a conservative approach by writing off R&D investments as incurred.
"By deploying our resources more efficiently and seizing opportunities for growth, we achieved our most profitable first-half performance in Mincom's 27-year history," Mr Mathews said.
"While we are encouraged with our growth, we will not take our focus or attention from our current customers and providing products and services which meet their industries' needs."
Examples of contracts signed around the world were SeverStal Resource (Russia), Centerra Gold (Mongolia), Eyesizwe Coal (South Africa), Ivanhoe Mines (Singapore), Ergon Energy (Australia), Arch Coal (USA), Agnico Eagle (USA), Magnum Coal (USA), Tanzania Defence Force, Reserve Bank of Zimbabwe.