Business Connexion rewards shareholders

Business Connexion, the listed ICT group has reported a 35.1% rise in revenue to R5.83 billion for the year ending August 2012, citing a good performance across its entire portfolio.

The group highlighted growth in key financial metrics as a direct result of its seven-year growth strategy to 2016, which focuses on the group’s cloud services offering, vertical sector solutions, application development and expansion into the rest of Africa.

Operating profit increased to R275 million, from R157.7 million in 2011, and earnings before interest, taxes, depreciation, and amortisation (ebitda) increased by 59.6% to R511.9 million and normalised operating profit margin increased to 6.3%.

BCX reported diluted headline earnings per share of 38.8 cents, from 17.2 cents, and declared a normal dividend per share of 14 cents, from 23 cents before, along with a special dividend per share of 40.0 cents.

“The strategic acquisitions made over the past twenty four months have been successfully integrated into the business’ overall strategy and have made significant contributions to the group’s results,” said Business Connexion CEO Benjamin Mophatlane.

The group posted a strong increase in revenue with the Services division posting a 9.7% growth, the International division a 26.8% growth, UCS and Canoa divisions reflecting greater than 100% growth and the Innovation division a 19.0% increase.

BCX said that the refocus and restructuring within the technology division has seen an improvement in performance and a return to profitability in the second half of the year.

“Operating expenses continue to be well managed. Business Connexion continues to generate strong cash flows from operations, which increased from R258.5 million to R520.8 million, the group said.

“As a direct result of the leadership changes we implemented on the 1st September 2011, we have seen a turnaround in the performance of our business and I would like to congratulate every person within Business Connexion for the effort and focus that has led to these excellent results, added Mophatlane. “Ongoing attention to improve our culture, including focus on our leadership development, and evolving our employee value proposition is part of this shift.”

Business Connexion has entered into a sale of shares, repurchase and subscription agreement with managed services company, Integr8 IT, in terms of which it will purchase 100% of the issued share capital of Integr8 IT for R126 million.

Looking ahead, BCX said that with its growing African footprint, broad client base, reputation and proven abilities, it is positioned to meet the challenges posed by the rapid changes and consolidation in the ICT industry, and take full advantage of its market position.

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Business Connexion rewards shareholders