BCX outlines Africa growth strategy
Business Connexion CEO, Benjamin Mophatlane says the group aims to up its African footprint to a position where it represents almost a third of its earnings within 3-5 years.
On Monday (5 November), the listed ICT group 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, while the group 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.
In a telephone interview with BusinessTech, Mophatlane said that BCX already had operations in African countries including Nigeria, Kenya, Mozambique, Tanzania and Zambia.
He said that BCX had also done some work in Ghana and would look at adding a presence there, with countries including Angola, Ethiopia, and Zimbabwe also future targets.
Mophatlane said that Business Connexion’s strategy would be in the form of partnerships and or acquisitions where necessary.
And while revenue from its business operations outside of South Africa accounted for a little over R420 million in the current reporting period, out of a total of R5.8 billion, Mophatlane said the aim is to drive up that revenue in the mid-long term.
He said that if BCX could harness 30% of its total earnings outside of South Africa within the next 3-5 years, “we would be doing very well”.
Business Connexion said it continued to generate strong cash flows from operations, which increased from R258.5 million in 2011, to R520.8 million.
“BCX is benefiting from being a larger and more diversified enterprise with an expanded customer base. Cross selling opportunities and synergies should contribute positively to future results,” the group said in a statement.
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