Business Connexion revenue up 35%
Announcing the full year results of the Business Connexion Group, CEO Benjamin Mophatlane said the strong growth in key financial metrics is the direct result of Business Connexion’s seven-year growth strategy to 2016, which focuses on the group’s cloud services offering, vertical sector solutions, application development and expansion into the rest of Africa.
Our revenue grew by 35,1% to R5.8 billion and gross profit margins increased from 30,9% to 31,5% for the year, primarily as a result of higher margin business from the acquired UCS assets and Canoa Group, and also from a good performance from the group’s other divisions. EBITDA increased by 59,6% to R511,9 million and normalised operating profit margin increased to 6,3%.
On the back of the improved profitability, return on equity increased to 7,1% (2011:4,3%) and return on total assets increased to 9,3% (2011:5,3%). Tangible return on equity was 13,8% (2011:7,5%).
The group has posted a strong increase in revenue with the Services division posting a 9,7% growth, the International division a 26,8% growth, UCS and Canoa divisions reflecting more than 100% growth and the Innovation division a 19,0% increase. The refocus and restructuring within the Technology division has seen an improvement in performance and a return to profitability in the second half of the year.
Furthermore, Business Connexion has also entered into a sale of shares, repurchase and subscription agreement with Integr8 IT Proprietary Limited (“Integr8 IT”), in terms of which it will purchase 100% of the issued share capital of Integr8 IT. It was established in 2001 and is currently one of the largest privately owned ICT managed services companies. It is a leader of annuity based infrastructure management and managed services to the mid-market corporates throughout South Africa. The company owns and operates the Nerve Centre®, a digital hub of people, technology and process, that regulates, monitors and maintains the technology infrastructure for many leading corporations.