Mophatlane won't back off

Johannesburg, 28 Feb 2008

Business Connexion CEO Benjamin Mophatlane is not discouraged by analysts questioning his suitability to lead the company.

Yesterday, investor analysts grilled BCX's management on its interim results. Although the company increased revenue to R2 billion, it saw operating profit decline by 22.4%, to R41.9 million.

The company's inability to answer several questions on operating costs and where it hoped to improve margins led one analyst to ask Mophatlane if he believed he was the right person to lead BCX.

Mophatlane says these questions were fair. "It's their job to protect investors; they must ask these questions. But I'm not backing off on this challenge. I know what needs to be done and I don't have any doubts about my ability to lead this company."

No turnaround

Additionally, Mophatlane says the company does not need a turnaround strategy, but rather the business needs to be revitalised.

"We find ourselves in a very challenging time but I wouldn't agree that we need a turnaround strategy. Frankly, this is a business that never had a vision for the next three to five years and has never had to face the true numbers. Our plan looks at revitalising the business over the next six to 18 months," he reveals.

Although Mophatlane would not be drawn on the details of this revitalisation strategy, he is confident some benefits will be delivered in its full-year results.

"Our problems are not on the sales side - that we do very well. We've got to look at things like revenue leakage, which is a very serious problem. We must also make sure the right people are in the right positions. I know where I need to take out costs. And this will be done in such a way that it will not affect staff morale and service to clients," he says.

Mophatlane also confirms the company has withdrawn from the bid for state-owned IT provider arivia.kom as it needs to "get its house in order".

At close of trade yesterday, BCX's shares were down 6% at R4.70.