Public sector participation is keeping ConvergeNet swimming during the global economic downturn.
The ICT service and solution firm has released its interim results for the six months ended February 2009, showing rising earnings, profit and revenue.
The company says its access to public sector business and an increasingly competitive broadband market contributed to its sturdy results.
“It is common cause that in addition to increased government infrastructure spending, the expected impact of competition in the broadband marketplace will drive additional growth in our target markets,” it explains.
The company says it understands the likelihood of an early end to a looming recession, and it is well placed to sustain growth. “ConvergeNet has virtually no interest-bearing debt and is ungeared. ConvergeNet remains focused on sustainable growth, improving earnings quality and further strengthening capability and capacity.”
ConvergeNet did not pay out a dividend for the half year. Revenue increased 30% from R423.9 million to R551.3 million. Net profit increased from R17.8 million to R23.2 million and headline earnings per share grew a marginal 2% over the period.
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