Sekunjalo lifts revenue 25%

·5 Nov 2013

JSE-listed Sekunjalo Investments has on Tuesday reported a 25% jump in revenue to R569 million, for the year ended August 2013, from R455.9 million before.

The diversified group, with interests in media and ICT related sectors, said that headline earnings increased from R18 million, to R30 million in 2013 with headline earnings per share up from 3.75 cents to 6.10 cents.

Operating profit improved from R59 million to R67 million.

The Sekunjalo Technology Solutions Group division earnings declined from R38 million to R35 million, “due to the expected lower margins after the successful implementation of projects”.

Strategic investments

The Groups strategic investments include British Telecom Communication Services South Africa (BTSA).

Sekunjalo said its investment in BTSA continues to perform well with budgeted expectations exceeded in the current year.

“The investment looks extremely well positioned to grow consistently over the next few years. The investment delivered another consistent dividend during the year under review.”

ICT

The expected growth of Sekunjalo Technology Solutions Group division (Sek TSG) is shown in the revenue growth of 27% – an increase from R152 million to R192 million.

The operating profit to the Group is R35m which shows that the technology solution division continues to perform consistently.

Companies in the Sek TSG division include Saratoga Software – which is a software development house primarily focused on the insurance industry – and Digital Matter, a 75% Saratoga owned subsidiary providing mobile data solutions.

In the current year, the Saratoga Group acquired World Wide Creative, a digital marketing agency to expand its operations into a new sector.

Media

The Sekunjalo Media (“Sekmedia”) division incurred a loss due to the cancellation and postponement of certain new events.

Sekunjalo Media owns the rights of and manages the Cape Town International Jazz Festival. The Cape Town International Jazz Festival continues to bear fruit and contributes greatly to the gross domestic product of the Western Cape and national economy of R475m and R800m respectively, Sekunjalo said.