Paracon`s board has recommended an annual capital distribution of 6c a share in light of surplus cash reserves and strong cash generation in the year to September.
The distribution, 3c a share higher than last year`s payout, is to be paid out of share premium, with the payment date set for 13 March next year.
Turnover for the period rose 45.7%, from R365.93 million to R533.44 million. The biggest contributor to the growth was IT resource provider Paracon Resourcing, which accounted for 83% of total turnover.
The growth was driven by a buoyant economy, the continuing recovery of the ICT sector and the group`s client-centric business approach, says CEO Mark Jurgens.
"Paracon Resourcing particularly benefited from the buoyant demand for specialist IT resources, especially within the financial, insurance and ICT sectors," he adds. The acquisition of Faritec Resourcing was also integrated during the year.
Earnings before interest, tax, depreciation and amortisation rose from R23.93 million to R39.03 million. A R45.5 million pretax profit compares with R22.15 million the previous year and the group achieved an attributable profit of R33.08 million, compared with R14.47 million previously.
Headline earnings rose from 5.9c a share to 8.6c a share, while basic earnings per share increased from 3.8c to 8.6c.
Cash generated from operations rose from R20.11 million to R42.25 million, resulting in cash and cash equivalents of R112.4 million on the balance sheet, up from R105.11 million at the end of the previous year.
"The market looks set to remain buoyant and demand from our customers continues unabated," Jurgens says. "We have positioned our business model in line with emerging global trends to ensure future growth. We are confident that we will continue to deliver shareholder value."
The Paracon share was trading at 103c on the JSE early this afternoon, up 1c or 0.98% from Friday`s close.
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