Paracon, which yesterday reported a 57% drop in full-year headline earnings per share, says its next financial year will be a better one.
Financial director Mireille Levenstein says the year to 30 September was a tough one in which the company was hit by several one-off costs.
[VIDEO]While Paracon Resourcing achieved earnings of R21.37 million before interest, tax, depreciation and amortisation, Business Solutions incurred a loss of R2.5 million. However, steps have been taken to rectify this.
Levenstein and CEO Mark Jurgens point out that the group`s balance sheet is strong, with a current ratio of 6.4 and healthy cash levels.
Jurgens says Paracon is looking to make acquisitions, although the right opportunities have not yet materialised.
Paracon is 25.2% owned by empowerment group WDB Investment Holdings. Dimension Data owns another 27% stake.
Jurgens says the group is taking transformation seriously. It has appointed a high-level transformation committee and appointed new black board members. Levenstein says that by the end of September the group had exceeded its December targets on the transformation front.
Jurgens says the group is still looking to appoint black executive directors.
He says "it would be wonderful" if the WDB stake could be increased to 50% over the next five years, although how that would be achieved is uncertain. He says Paracon, which recently received an A rating from empowerment rating firm Empowerdex, would also benefit if Dimension Data concluded a large empowerment deal.
Levenstein says the group is planning an odd-lot offer to buy back the shares held by shareholders who own less than 1 000 shares each. The terms of the offer have not yet been disclosed.
Related story:
Challenging year for Paracon
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