JSE-listed specialist skills provider Paracon is benefiting from SA`s imbalance in the availability and demand of specialist ICT skills.
The company yesterday posted its results for the year ended 30 September 2007.
Paracon CEO Mark Jurgens noted that SA`s skills scarcity had resulted in Paracon`s resourcing offerings receiving heightened attention from the market. However, he warned this was becoming a challenge for the group.
"Our biggest problem is finding the right skills. We have the orders - in fact, our order book is full - but we have to find enough of the right skills to fill those positions. On our side is the fact that we have the widest variety of contracts available for those looking for employment," he explained.
Additionally, Jurgens said the company is using its 34.6% stake in Nihilent to access Indian skills.
"Some of our customers - particularly in the financial services sector - are beginning to open up to the idea of using Indian skills. This is simply because there are just not enough skills in the market to satisfy their requirements. At the moment, we are sub-contracting about 100 of Nihilent`s 800 SA-based skills. In fact, Nihilent has performed well beyond our expectations in this period."
Strong performance
Paracon`s group financial director Mireille Levenstein said the period had produced exceptional growth along all key indicators.
The company`s annual results show revenue climbing 25%, to R792 million; net profit increasing 52%, to R67 million, and earnings per share (EPS) and headline EPS climbing 55% and 52%, to 17.9c and 17.6c, respectively.
As a result, Paracon is upping its distribution to shareholders by 25%, to 10c. This will be facilitated through a 5c dividend and 5c capital reduction distribution.
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