Finweek English Edition - - SMALL CAP -

per­for­mance of th­ese en­ti­ties, and in the long-term, en­sure that in­fra­struc­ture funds can be prop­erly in­vested.”

The IT di­vi­sion pro­vides soft­ware and support to lo­cal mu­nic­i­pal­i­ties by way of long-term con­tracts, some­thing that re­sults in an­nu­ity t ype in­come. Post the re­port­ing pe­riod, the company an­nounced the ac­qui­si­tion of R-Data, which ser­vices mu­nic­i­pal­i­ties in the Western Cape and Zim­babwe.

Wit h t he c om­pany ’ s mar­ket c apit a l i s at i on now a pproac h i ng R2bn, t he i mpres­sive growth will be­gin to f ind its way onto the radar of in­sti­tu­tional in­vestors. That doesn’t mean re­tail in­vestors are ig­nor­ing it though. In the last three months, the share price has risen 32%.

At the time of writ­ing, the share was trad­ing at R17.99, ref lect­ing a his­tor­i­cal price-to- earn­ings ra­tio of 25.3 times and div­i­dend yield of 1.11%. This will not be an is­sue so long as the rate of growth con­tin­ues. King be­lieves the company is at the early stages of its growth, and ex­pects the sec­ond half of the year to con­tinue the company’s ex­cel­lent per­for­mance.

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