IT services and solutions company Paracon Holdings boosted headline earnings per share 39% to 4.3c for the six months to end-June, compared with 3.1c for the same period last year.
Turnover rose 138% to R132.3 million (1999: R55.5 million), with earnings before interest, tax, depreciation and amortisation (EBITDA) rising 95% to R17.7 million (R9.1 million).
CEO Mark Jurgens says the group has seen solid growth from offshore operations, which contributed 36% of turnover. EBITDA margins fell from 16.4% to 13.4%, as operating margins offshore are lower than in SA.
During the six months Paracon acquired New York-based Mercury Technologies and SA-based DPCC.
"The group has continued to implement its strict quality policy with regard to acquisitions," says Jurgens.
"Only businesses that are strategically positioned and complementary to Paracon`s operations are considered, and in-depth financial and operational reviews are performed to ensure quality of earnings and growth potential."
He adds that while the latest acquisitions have had a minimal effect on earnings per share, he does expect them to contribute to earnings in the short-term.
Paracon had cash reserves of R87.6 million at the year-end (R122.2 million) after using R37.4 million to fund the offshore acquisition.
Attributable profit for the period increased 64% to R15.5 million (R9.4 million).
Jurgens says the group expects to continue to show strong growth, largely due to its position in the fast-growing sectors of staffing, outsourcing and customer relationship management.
The Paracon share price was unchanged at 150c by midmorning.
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