Business Connexion revenue up despite slump in normalised HEPS

by Trust Matsilele 0

The group saw organic revenue surging by 7.2 per cent from 6.1 billion rand in 2013 to 6.5 billion rand in 2014.   

(READ MORE: Business Connexion plugs into profit)

“This reflects the return from the group’s focus on an improved sales culture and cross-selling,” said the company in a statement.

The group’s results for the year ending 31 August 2014 also saw a decline in normalised diluted headline earnings per share to 39 cents down from 45 cents in 2013.

The reporting period saw the company weathering tough trading conditions.

“Normalised gross profit margins remain largely unchanged at 29 per cent similar to the same comparable period last year despite tough economic conditions and continuing market pricing pressure,” added the group.

[DATA BCX:Business Connexion Group Limited] recorded a normalised operating profit margin of 4.9 per cent down from 5.2 per cent in 2013.

“The industry dynamics are set to change significantly in coming years driven by continuing market consolidation and a fundamental shift to the cloud and the ‘Internet of Things’.”

The group said this will present new and exciting opportunities for Business Connexion.

“The Group will continue to actively position itself to create value for its clients through innovative and industry-specific solutions.”

(READ MORE: Business Connexion’s HEPS drop due to sale of Qlink)

The company said it was now embarking on a number of initiatives focussing on increasing margins through operational efficiency.

“The mergers and acquisitions strategy will continue to focus on opportunities in the rest of Africa and acquire innovative solutions to enable the Group to play a leading integration role in ‘The Internet of Things’.”

The company’s revenue in the international division grew 28 per cent to 685 million rand up from 532 million in 2013 representing strong revenue growth in the African countries where Business Connexion has a presence.

However, in spite of this, the division delivered an operating loss of 27.6 million rand from 11 million rand profit in 2013 due to a poor performance in the Nigerian operations.