ICT group, Business Connexion (BCX) on Tuesday reported a marginal increase in revenue for the interim period ended February 2014.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
These new client wins contributed to a recovery in operating profit growing 48.3% to R101 million, the group said.<\/p>\n
Revenue for the\u00a0UCS division increased 9.1% to R610.9 million and operating profit improved to R50.2 million.<\/p>\n
“Despite difficult trading conditions within the retail industry, the division continues to show pleasing growth,” Business Connexion said.<\/p>\n
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”.<\/p>\n
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.<\/p>\n
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.<\/p>\n
The International division is responsible for capturing growth in West Africa, East Africa and Southern Africa (excluding South Africa).<\/p>\n
Revenue in the International division grew 30.9% to R314 million supported
\nby a growing presence in Nigeria.<\/p>\n
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.<\/p>\n
“This is expected to enable the group’s significant capabilities to be deployed across Africa to support the emerging growth opportunities,” it said.<\/p>\n
“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.<\/p>\n
Business Connexion to offload Q Link<\/strong><\/a><\/p>\n Business Connexion in UK acquisition deal<\/a><\/strong><\/p>\n