JSE-listed Mvelaserve's ICT subsidiary contributed to top line revenue growth in the company's maiden year as a listed entity.
Mvelaserve, which provides outsourced services, was unbundled from the Mvelaphanda group and listed separately last November.
Its portfolio includes security through Protea Coin, facilities management through TFMC, Royalserve catering and cleaning, Contract Forwarding freight services, water purification through SA Water, and IT support and services unit Circle ICT.
Yesterday, it published its first full set of results as a listed entity. Mvelaserve attributed the 11% year-on-year increase in revenue, to R4.6 billion, to organic growth in the group's established businesses.
However, 13% of the top line growth came from its recent acquisition of SA Water, its increase in shareholding in Stamford Sales to 100%, and the creation of Circle ICT Solutions. Circle was founded last year to provide in-house ICT solutions. From July, it was spun out of Protea Coin and now operates as a separate entity.
CEO Jorge Ferreira says Circle ICT made progress with its plans to broaden its client base outside of the group, which it did ahead of schedule. The unit returned satisfactory maiden revenue and margins, and has bedded down well, he adds.
Gaining traction
Mvelaserve's primary goal for Circle in the company's first year as a listed entity was to roll out its services across the group. It only wanted to take Circle external over the medium-term. The company provides services such as IT procurement, Web site development, hosting, software development and server support.
Ferreira is pleased with Mvelaserve's evolution into an independent group, servicing public and private sector clients. He explains the company focuses on outsourced non-core business support services.
Mvelaserve declared a final dividend of 36c and ended the year with R243 million in cash. Its share closed marginally higher at R11.20 yesterday, a 9c or 0.81% gain.
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