JSE-IT resourcing and business solutions group Paracon Holdings grew headline earnings per share to 3.8c in the six months to March, from 2.7c in the same period a year earlier.
Turnover increased by 42%, from R167.36 million to R237.17 million, which CEO Mark Jurgens says is thanks to market buoyancy and the incorporation of the group`s recent acquisitions.
"The group, specifically the Paracon Resourcing division, reflected the positive impact of the ICT sector`s recovery and the resultant increase in demand for specialist IT resources," he says.
Paracon Resourcing, which accounts for 86% of the group`s turnover, benefited especially from the Gauteng financial services sector`s demand for IT specialists.
The group achieved a 46% increase in earnings before interest, tax, depreciation and amortisation, from R11.41 million to R16.68 million, while pre-tax income rose from R10.05 million to R19.87 million.
The profit for the period amounted to R14.64 million, compared with R5.99 million previously.
Basic earnings per share rose by 146% from 1.5c to 3.8c. Jurgens says this growth was aided by the implementation of accounting statement AC 140, in terms of which goodwill is no longer amortised but reviewed for impairment. The comparative 2004 figures have not been restated.
Cash generated from operations improved from R13.57 million to R18.26 million. The balance sheet shows the group had cash of R100.79 million at the end of the period.
Paracon says the rationalisation of its Business Solutions division last year yielded benefits, leading to a steady performance aided by increasing demand for project management services.
The May acquisition of specialist networking provider Ivory Networking will further boost the division`s client base and delivery capability, it adds.
Jurgens says that in light of the group`s performance and the current market buoyancy, the group is confident of continued growth for the full year.
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