BCX beats empowerment target
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”.