Sharp rise in operating profit

TECHNOLOGY group Business Connexion posted a 30.4 percent rise in operating profit to R420 million and said organic growth had increased by 7.2 percent from new enterprise clients in the year to August. “This organic growth reflects the return from the group’s focus on an improved sales culture and cross-selling. Reported revenue grew by 5.5 percent to R6.512 trillion,” the company said yesterday. Normalised gross profit margins remain largely unchanged at 29 percent compared to 29.6 percent last year, despite tough economic conditions and continuing market pricing pressure. The company said the industry dynamics were set to change significantly in coming years driven by continuing market consolidation and a fundamental shift to the cloud and the “internet of things”. – Dineo Faku