MICROmega Holdings Limited. JSE: MMG

MICROmega shares

Background of MICROmega

  • MICROmega Holdings is a South African holding company comprising subsidiaries involved in the fields of occupational health and safety, information technology and financial and other services.

  • In the Occupational Health & Safety unit, brands include NOSA, Action Training Academy and Aspirata. Business in the Labour Supply unit is conducted through human resources agency MECS. Financial Services are carried out through MICROmega Securities, while Information Technology is covered by around 10 companies. Occupational Health & Safety and Information Technology each contribute around 40% of revenue, with the remaining revenue split between Labour Supply and Financial Services.

  • MICROmega shares are available to buy under the Support Services sector of the Johannesburg Stock Exchange (JSE), with a market cap of just over R1 billion. The live online stocks chart shows that MICROmega share price has taken a significant dip recently.

MICROmega Shares Growth Driver

  • Although growth was slower than in previous years, MICROmega still managed a strong performance in the 2016 financial year, with profits rising by R35 million to R145 million. Even in the face of challenging economic conditions and an unanticipated deferred tax charge of R5.5 million, headline earnings per share increased by 22%.

  • The group’s companies have been forced to work harder to secure business, due to cost cutting measures across the entire public and private customer base. The main health and safety business, NOSA, produced solid growth on the back of improved technology platforms, offsetting cutbacks from major international customers. Sebata, the group’s main software and related services business, achieved a remarkable 83% rise in earnings, but overall, the information technology division only improved profits by just less than 50%. The water technology business was unable to fully deliver technology to clients due to cash flow problems from the client’s side, which resulted in abnormally high stock levels. The group is paying attention in investing in its South African developed IP which has proved popular in the local market and is gaining international traction.

  • A number of businesses which the group decided to buy have been successfully integrated into the public sector arm, whilst the company has been appointed in a number of multimillion rand tenders and audit report processes. Despite particularly challenging trade conditions, the financial services division had a 44% profit increase, due to improved service delivery. The labour supply division has however been an underperformer, with MICROmega looking to improve a poor return on capital.

MICROmega Investor Tip

  • MICROmega is confident that it will achieve further profit growth despite difficult market conditions. The forecast for acquisitions is constrained, but the operating cash flow is strong at R202.5 million, and MICROmega has been able to grow dividends distributed to shareholders. The company’s proprietary IP was the biggest project in recent years, and now that this is almost completed, benefits are being reflected in the group’s financial data.

  • MICROmega share price experienced a significant dip in 2016, but could prove to be an undervalued, rewarding buy in the future.

MICROmega Major Shareholders

Friedshelf 1382, Kamberg Investment Holdings, Seratrix, TTSA Securities, Enigma Investments Holdings.

  • Sector

    Consumer Discretionary

  • Industry

    Commercial Services

  • Sub industry

    Professional Services

How to buy MICROmega Group Shares

  • MICROmega : How to buy MICROmega Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy MICROmega Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in MICROmega Group and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase MICROmega Group shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in MICROmega Group.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
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