BCX grows interim revenue 5.5%
ICT group, Business Connexion (BCX) on Tuesday reported a marginal increase in revenue for the interim period ended February 2014.
Revenue climbed 5.5% to R3 billion, while operating profit soared to R300 million, from 145 million before. EBITDA increased by 61.8% to R421.8 million.
Diluted headline earnings per share declined to 15.6 cents per share, from 19 cents per share in 2013, following the sale of its QLink business during the reporting period.
In September 2013, BCX entered into an agreement to dispose of its entire interest in its QLink business unit to Summit Garnishee Solutions for R187.5 million.
Business Connexion said its services division grew revenue by 11.5% to R1.103 billion on the back of new business won in the latter part of the prior year.
These new client wins contributed to a recovery in operating profit growing 48.3% to R101 million, the group said.
Revenue for the UCS division increased 9.1% to R610.9 million and operating profit improved to R50.2 million.
“Despite difficult trading conditions within the retail industry, the division continues to show pleasing growth,” Business Connexion said.
The Canoa division offers Managed Print Solutions (MPS) and office automation. BCX entered into the Nigerian MPS market during the period and “offers very exciting prospects for the group”.
Revenue for this division remained stable at R522.7 million (2013: R514.9 million) whilst operating profit decreased to R47.6 million (2013: R56.9 million) as a result of lower margin product business during the period.
For its technology division, positive results were achieved with revenue of R356.6 million and a contribution of R16.3 million to operating profit for the year (2013: R13.1 million), Business Connexion said.
The International division is responsible for capturing growth in West Africa, East Africa and Southern Africa (excluding South Africa).
Revenue in the International division grew 30.9% to R314 million supported
by a growing presence in Nigeria.
Looking ahead, Business Connexion said that it is clustering all its delivery entities into three centres of excellence – Converged infrastructure solutions, Business solutions, and Investments and Alliances.
“This is expected to enable the group’s significant capabilities to be deployed across Africa to support the emerging growth opportunities,” it said.
“The group remains confident that the benefits from group-wide cross-selling combined with an improved performance from Nigeria, will result in the group achieving its targets for the full year,” Business Connexion said.
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