Technology services company Business Connexion (BCX) has reported an improvement in normalised headline earnings. For the year ended 31 August 2013, normalised headline earnings per share rose by 4%, from 50,6c last year to 52,2c.
The company, which is headed by CEO Benjamin Mophatlane, lifted operating profit by 17,3% to R322,6m on the back of a 5,9% improvement in revenue to R6,2bn. The dividend has been maintained at 20c/share, the same level as 2012.
BCX says its focus in the past year has been on organic growth, expansion in Africa outside South Africa, strategic acquisitions and cost containment. It says it secured significant new client wins in the 2013 financial year.
Normalised operating expenses were “tightly managed”, growing by just 0,5%, thanks in part to a shared-services model.
However, gross profit margins decreased slightly to 30,3% from 31,5% in 2012, mainly because of delays in “transitioning” new contracts in the first half of the year. This resulted in costs being carried for a number of months without corresponding revenue, BCX says.
The international division — made up of Kenya, Mozambique, Namibia, Nigeria, Tanzania, Zambia and the UK — grew revenue by 13,9% to R532,9m, although operating profit was down slightly to R11,1, from R11,7m last year.
“Growth in Nigeria has been strong and it is the biggest profit contributor in the division. The group remains confident in unlocking the significant future potential in Africa.”
It says organic growth in Nigeria will be “supported by potential niche acquisitions as the group continues to focus on this key growth market”. — (c) 2013 NewsCentral Media
