Mvelaserve, an outsourced business service supplier, made its debut on the JSE yesterday, after being spun out of the Mvelaphanda group.
Mvelaserve listed on the JSE's main board at R14.50, with the share code MVS. The company's shares closed down on the day at R12.90.
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.
Mvelaserve also owns a food manufacture and King Pie franchising operation, Khuseti; and Zonke, which monitors limited pay-out machines. Mvelaphanda shareholders received 25.03 Mvelaserve shares for every 100 shares in Mvelaphanda.
CEO Jorge Ferreira says Circle IT started out as the company's in-house IT services provider, but then started acquiring external clients through word of mouth.
Future growth
Ferreira says while it's too early to set growth targets for the unit, he is hopeful that it will become a meaningful contributor to revenue and profit over the next few years. Circle IT was founded in July this year.
Ferreira says the intention was to keep Circle as an in-house company for a year, but now that the company has already garnered external clients, its strategy will have to be reworked. He expects Circle to benefit from cross-selling opportunities across Mvelaserve's existing client base.
For the year to June, the group grew revenue 17%, to R4 billion, and net income came in at a R155 million profit, compared with a R10 million loss in the previous year. Its margin was stable at 8%, despite the recessionary economic environment.
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