Business Connexion in profit surge
Listed ICT group, Business Connexion (BCX) on Tuesday reported a 5.5% lift in revenue to R6.5 billion for the ear ended August 2014.
Operating profit increased by 30.4% to R420.8 million, while EBITDA was up by 17.8% to R660.3 million.
Normalised diluted headline earnings per share of 39.8 cents per share, was down from 45.1 cents in 2013.
The group declared a special gross cash dividend of 20 cents per share on 7 August 2014.
In May, Telkom said it had entered into an agreement to acquire BCX in a R2.7 billion cash offer funded from its own cash resources.
At a shareholders meeting in August 2014, shareholders voted in favour of the offer by Telkom to acquire the entire share capital of BCX by way of schemes of arrangement.
The proposed transaction is now awaiting approval from the Competition Commission of South Africa; the Common Market for Eastern and Southern Africa; and the Independent Communications Authority of South Africa (Icasa).
BCX said that costs relating to the Telkom transaction had amounted to R9.9 million.
The group said its services division, which offers a full range of ICT infrastructure services and value added business solutions, including cloud services, grew revenue by 6.4% to R2.3 billion.
The UCS division, which offers end-to-end solutions targeted at the retail industry, grew revenue by 9.6% to R1.28 billion, while operating profit improved to R108 million.
The Canoa division offers Managed Print Solutions (MPS) and office automation, saw revenue decrease by 3.2% to R1.08 billion and operating profit decrease to R99.2 million, from R116 million in 2013.
The Technology division achieved strong organic revenue growth of 19% to R826.4 million and a contribution of R34.4 million (2013: R26,5 million) to operating profit for the year.
Revenue in the International division grew 28.8% to R685.5 million. However, the division delivered an operating loss of R27.6 million (2013: R11.1 million profit) for the year due to a poor performance in the Nigerian operations.
“The operational challenges in Nigeria are being addressed,” BCX said.
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