Sparkling results buoy Business Connexion

Technology company Business Connexion's share price rose as much as 4% in early trading yesterday after it reported its best results in eight years.

Its share price closed 2.02% higher at R5.05 and its headline earnings a share rose to 39c for the year to August from 17.3c last year.

Revenue grew 35.1% to R5.8-billion and gross profit margins increased from 30.9% to 31.5% thanks to acquisitions of Canoa and UCS businesses.

It has also entered into an agreement to acquire privately owned technology management company Integr8 IT for R126-million.

The acquisition would provide Business Connexion with an entry into the mid-sized corporate market throughout South Africa and Africa, said CEO Benjamin Mophatlane.

In addition, Integr8 IT is expected to enhance the group's ability to win market share in the public sector, in the rest of Africa and store environments in the retail sector where this acquisition will add to the services provided by its subsidiary, CEB Maintenance.

Mophatlane said although the company had a "great year", the market was still "challenging".

"All key businesses performed well and are profitable, including the technology unit. The acquisitions have also delivered and exceeded expectations," he said.

The UCS division contributed about R1.1-billion to group revenue, with an operating profit of R116.9-million whereas the Canoa division contributed R860.5-million in revenue and R106.5-million in operating profit.