Paracon Holdings has reported a 28.6% increase in headline earnings per share for the six months to 31 March.
The group emerged from a tough previous financial year when its headline earnings per share fell by 57% as a result of several one-off costs.
Turnover of R167.36 million for the latest interim period compares with R166.91 million for the same period a year before, while attributable profit increased from R3.62 million to R5.99 million.
Paracon Business Solutions has been turned around, with the division achieving earnings before interest, tax, depreciation and amortisation (EBITDA) of R1.4 million versus a prior-year loss of R4.66 million. Turnover of R34.37 million compares with R36.39 million previously.
Paracon CEO Mark Jurgens says the turnaround is the result of efforts in rationalising the division into a more focused, smaller operation.
Paracon Resourcing`s turnover slipped from R141.64 million to R132.99 million while EBITDA of R10.02 million compares with a prior-year figure of R11.02 million.
"The division`s growth has been hampered by the drop in the number of billable contractors in the prior year and by constraints in tax and labour laws," says Jurgens. "While market conditions remain difficult, the last quarter has seen increased activity at various clients."
He says that markets remain tough and Paracon continues to adopt a conservative view for the remainder of the year.
The group recently announced it had entered into a binding memorandum of understanding regarding a proposed acquisition, subject to the completion of a due diligence exercise which Jurgens says is still under way. He says the acquisition will increase the group`s market share and improve its capacity to serve a wider range of clients.
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