Business Connexion (BCX) is to pay its shareholders two dividends totalling 37c a share after more than doubling headline earnings for the year to May 2005.
Attributable income rose to R290.6 million from a previous R120.5 million. Headline earnings rose from R86.6 million to R184.5 million, even through revenue was flat at R2.82 billion (2004: R2.81 billion). Headline earnings per share rose from 34.2c to 74.9c.
CEO Peter Watt says the performance is the result of a continuing focus on service delivery, a substantial annuity income base, cost controls and a positive cash flow.
"In addition, we disposed of non-core interests in Mosaic, DHS, Perago and Corp 40, and settled our trademarks dispute with the South African Revenue Service," he adds.
"This contributed a once-off R142 million to attributable profit, of which R35.9 million affected our headline earnings. This still leaves our underlying headline earnings for the period at R148.6 million. This is still nearly double last year`s figure."
Although total revenue was flat, revenue from the South African operations rose by 9%, with Africa having the dampening effect.
"The strategy of expansion in Africa suffered during the year as fewer substantial contracts were available," Watt says in his commentary on the results.
"This resulted in a reduction of 56% in revenue from this region." However, he adds that BCX is still committed to expanding in Africa.
An ordinary dividend of 20c a share has been declared, along with a special dividend of 17c a share, to be paid on 12 September.
The BCX share was trading at 600c on the JSE this morning, 10c or 1.7% up on yesterday`s close.
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