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.