Black-controlled investment holding company Sekunjalo Investments is considering listing its technology and telecommunications subsidiary in the next financial year.
Sekunjalo has investments in healthcare and pharmaceuticals, aquaculture and biotechnology, IT and telecoms, financial services, and food and fishing.
The IT and telecoms portfolio consists of Synergy, Semtech, XN Africa, Health Systems Technologies and Sharenet.
Sekunjalo's net profit surged from R1.61 million to R37.47 million in the year to 31 August. Revenue rose from R310.76 million to R399.83 million and the group achieved a pre-tax profit of R38.85 million, up from R7.72 million the previous year.
An income tax gain of R6.61 million (2004: R4.2 million expense) helped the group to an after-tax profit of R45.46 million (R3.51 million). Headline earnings rose from 1.18c a share to 4.76c a share, while basic earnings per share of 14.69c compare with previous earnings of 1.04c a share.
Sekunjalo CEO Iqbal Surve says the IT and telecoms portfolio performed strongly, contributing to group profitability earlier than expected.
Business intelligence firm Synergy is expected to show organic growth of more than 20% a year over the next few years with a 10% return on sales.
"Semtech continues to be a marginal contributor and is focused more on research and development for the food-processing sectors," says Surve. "XN Corporation Africa has performed exceptionally well and exceeded budgeted projections for the year."
Surve describes Health Systems Technologies' performance as satisfactory, adding that the company expanded its investment with government and diversified into further enterprise resource planning business.
Financial Web site Sharenet "continues to perform well and is expected to provide a core component of the IP for the financial services and IT platforms", he adds.
"Sekunjalo's IT and financial services businesses are expected to contribute strongly to group earnings in the years ahead. Sekunjalo is exploring the possibility of listing the IT and Telecommunications Africa subsidiary in the next financial year."
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