Johannesburg — THE dual plagues of junk e-mail and internet virus attacks are creating a major headache for most businesses, but are adding up to big business for software company ERP.Com.

Demand for its internet security software has helped create a 24% rise in headline earnings a share from 5,5c to 6,8c for the six months ending January 31. The security side of its business now generates 53% of the group's total revenue, which grew 8% from R64,3 to R69,8m for the period.

Despite the solid results ERP.Com shares shed 4c in early trade yesterday .

CEO Peter Forsyth said he was satisfied with the group's performance given that trading conditions remained difficult.

One move that should certainly please shareholders is a decision to increase the dividend from 20% to 30% of headline earnings. With no plans for any major acquisitions, the company can afford to increase its dividend as it now has cash in hand of R59,5m, up 44% from a year ago.

ERP.Com operates three business units. Its information security division is expected to continue to perform well in the next six months as demand continues for antivirus, intrusion detection and firewall software.

A division selling enterprise resource planning software was hit by a slowdown in customer spending during the interim period, but Forsyth said its pipeline of planned projects was strong enough to expect an improved performance in the second half. That division accounted for 33% of the group's total business.

The third arm, a networking solutions division that brings in 14% of the revenue, performed steadily and should continue to do so with no fireworks expected.

A more likely source of growth is expected from its new African division . Forsyth said the division was already profitable and sales partners had been established in all major countries.