BCX beats empowerment target

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Listed ICT company Business Connexion (BCX) has moved a step up the empowerment ladder a year early.

The company is now a level three broad-based black economic empowerment contributor, having improved from its previous level four position.

CFO Vanessa Olver says BCX's next target is to become a level two company in 2011, but if it implements its plan to sign more deals with empowerment organisations, it could meet that aim by year-end.

Last year, during the company's results presentation, Olver said BCX may review its ownership structure to give it a better empowerment profile. Black-owned Gadlex owns 20.1% of BCX.

Olver explains that this stake may change as BCX seeks to acquire more empowerment partners.

A level three position gives the company an empowerment recognition level of 110%, compared to level four, which is 100% and seen as being fully compliant with empowerment legislation.

The highest level that can be attained is level one, which is a BEE recognition level of 135%.

Olver explains that BCX has bolstered equity at board and management level. In addition, it has improved employment equity and invested in skills development.

She adds that a staff share option scheme has been approved by employees, which bolsters the company's empowerment status.

BCX has met its target of improving its position a year early, initially expecting to become a level three contributor by the end of this year. The company says it “remains committed to transformation and will continue to focus on equity ownership, employment equity and skills development”.

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