JSE-listed Business Connexion (BCX) is retaining some of its cash on hand to fund further acquisitions, after growing its bottom line almost fourfold in the first half of the year.
The company this morning presented its interim results for the period to February and said revenue grew 43.5%, to R2.7 billion. Headline earnings per share, a key performance measure, gained 137.2%, to 22.3c.
Most of BCX's units grew, with the exception of its technology business, which saw operating profit slide to negative R7.7 million, from an operating loss of R1.5 million a year ago. It expects full-year headline earnings per share to improve by more than 20%.
BCX has R298.6 million in cash on its balance sheet. CEO Benjamin Mophatlane says the group would look at doing deals if there are good acquisition opportunities.
However, Mophatlane says BCX also has a dedicated dividend policy, which is where some of the cash will be spent. The company has a dividend policy that means that it returns between 2.5 and three times normalised attributable profit to shareholders at year-end.
This week, the firm said it bought Quad Automation, for an undisclosed amount, to bolster its industry solutions business.
BCX's international division exceeded expectations, with deals signed in some of the countries in which it operates. The company has a presence in Ghana, Nigeria, Tanzania, Namibia, Mozambique, Kenya, Zambia and the UK.
Mophatlane says BCX had a “great start” to the financial year, but it was not easy. He says the global economy is still weak and SA continues to be a challenging environment. “Like many in our industry, our business was severely tested.”
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