Photo by: Duane Daws
South Africa-based information and communications technology company Business Connexion (BCX) has grown its revenue for the year ended February 28, by 16%, posting full-year earnings of R3.5-billion.
The company said in a results statement on Thursday that growth was underpinned by organic revenue growth of 15.1%, resulting from new client wins, which reflected the group's focus on an improved sales culture and cross-selling.
Gross profit margins, at 2.4%, remained largely unchanged, despite continuing tough economic conditions, as well as market and client pricing pressures.
“The focus on operating expenses and balance sheet management continues, with normalised operating expenses remaining flat and reduced capital expenditure,” outlined BCX.
The group recorded a normalised operating profit margin of 5.6%, while the tax charge in the prior period included the provision for R25.7-million capital gains tax on the sale of QLink.
The group generated diluted earnings a share of 17.6c for the period and diluted headline earnings per share (HEPS) for the period of 17.7c.
“On a normalised basis, excluding primarily the profit on the sale of QLink and the impact of the amortisation of intangibles, diluted HEPS is 25.9c,” the company stated.
Fellow JSE-listed telecommunications group Telkom had made a R2.67-billion buy-out bid for BCX. The parties were still awaiting approval from South Africa’s competition authorities to proceed with the deal.