Business Connexion (BCX) has bolstered its operating profit 107% ? to R300.3 million - in the first half of the year, despite revenue only gaining 5.5%.
The group's interim results, for the six months to February, show revenue gained to just over R3 billion, while net profit more than doubled, from R101.4 million to R224.4 million.
However, eliminating several once-off items, such as the profit on its sale of QLink and amortisation of intangible assets, diluted headline earnings per share dropped from 19c to 15.6c, while basic earnings per share, on a diluted basis, gained to 52c, from 19.5c.
Analysts view headline earnings per share as a core measure of profitability as the figure strips out unusual items. QLink, a collections platform, was sold last September, for R187.5 million, to Summit Garnishee Solutions, because it was no longer part of BCX's core strategy.
BCX, which is trading under cautionary, says in its commentary that it continued to generate healthy cash flows and it ended the year with R204.6 million in the bank, compared to R158.1 million in the first half of last year.
The listed company is now "clustering" its units into three areas: 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."
This follows its recent restructuring, which aimed to give impetus to its African expansion plans and removed silos, deputy CEO Vanessa Olver has said. It says it is "confident" of hitting targets for the full year.
Share