Cost-cutting puts BCX in profit zone

Benjamin Mophatlane : Dep. CEO @ Business Connexion pix Robert Tshabalala 13/09/06 © FM
Benjamin Mophatlane : Dep. CEO @ Business Connexion pix Robert Tshabalala 13/09/06 © FM

BUSINESS Connexion (BCX) has boosted its profit margin to 4percent following a series of cost-cutting moves.

BUSINESS Connexion (BCX) has boosted its profit margin to 4percent following a series of cost-cutting moves.

The company's revenue increased by 33percent in the year ended August to R5,5billion after embarking on what it called its "revitalisation" programmes.

This involved restructuring and slashing an undisclosed number of jobs expected to deliver annual savings of about R100million.

Gross profit increased by 26,6percent, allowing the company to issue a dividend of 18 cents a share.

Chief executive Benjamin Mophatlane said: "The restructuring and head count reduction activities have been completed and the revitalisation programme is starting to deliver the planned savings.

"Most savings have come from support functions, with the group continuing to focus on service delivery."

A public sector spending increase also helped - despite spending by the private sector decreasing, he said.

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