JSE-listed IT services and solutions provider Paracon Holdings aims to increase its international revenue from the current 8% to 22% by the end of this year.
The company, reporting its maiden financial results for the year to 31 December 1999, says the formation of its US subsidiary, Paracon International, allows Paracon to expand its presence internationally and provides rotation opportunities for local contractors to gain experience in the global arena.
Paracon lifted operating profit to R22.8 million last year, compared with a pro forma R8.7 million previously. This was on the back of a 90.7% increase in turnover from R74.5 million to R142.1 million. Attributable profit increased to R25.0 million (R8.2 million previously), with headline earnings per share rising to 7.5c (3.2c).
No dividend was declared, in line with group policy.
The year was marked by a restructuring of Paracon`s operations into three business units - IT services, business solutions and software solutions. All three units achieved excellent growth, says CEO Mark Jurgens.
"The group has rapidly moved up the value chain by expanding its IT solutions business," he adds.
Jurgens says Paracon`s more than R90 million in cash provides it with a solid platform for growth and expansion.
"This healthy balance sheet places Paracon in an optimal position to pursue its acquisition strategy.
"The group has adopted a strict quality policy to this strategy, focusing only on the acquisition of companies which are strategically positioned and complementary to Paracon`s operations, and in-depth financial and operational reviews are performed to ensure quality of earnings and growth potential," he adds.
Jurgens is upbeat about the group`s prospects for this year. "The group is currently focused on three of the largest and fastest growing sectors in the IT industry, namely staffing, outsourcing and CRM [customer relationship management] and we are well poised to take advantage of the ever-increasing shortage of local IT skills."
The Paracon share was at 170c in mid-morning trade on Wednesday, 9c or 5% down on Tuesday`s close of 179c.
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