JSE-listed technology services provider Business Connexion (BCX) has reported a slight decline in normalised headline earnings per share of 20,7c in the six months ended 28 February 2014, from 21,3c previously.
Revenue for the period was R3,1bn, up by 5,5% over the same period in 2013. Cash generated from operations rose to R261,7m. The company also received R187,5m from the sale of its Qlink business.
Gross profit margins remained stable at 30% “despite continuous market pressure”.
The services division performed well, with revenue up by 11,5% to R1,1bn. Operating profit jumped by 48,3% to R101m.
The UCS division, which specialises in providing technology solutions to retailers, performed satisfactorily, with revenue up by 9,1% to R610,9m and operating profit up by 6,8%, despite “difficult trading conditions within the retail industry”.
A strong performer, at least at the top line, was the international division, which is focused on Africa outside South Africa. Revenue here grew by 30,9% to R314m, supported by a growing presence in Nigeria. However, the division reported an operating loss of R12,7m.
“A once-off project in Ghana in the previous financial year and timing issues on stock deliveries in Nigeria contributed to the operating loss. The issues in Nigeria have been addressed and the group expects the division to return to profitability in the second half of the year.”
BCX’s share price was trading up by more than 5% on Tuesday morning on the back of the results. BCX also cautioned shareholders that it has entered into discussions that could, if successfully concluded, have a material impact on its share price. — (c) 2014 NewsCentral Media
