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BCX reports strong infrastructure growth

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Business Connexion has turned in revenue of R2-billion for the six months ended 30 November, a 16,1% increase over the same period a year before. The Technology Infrastructure parts of the business were the main contributors, with revenue growth of 38,9%. 

However, the Services business has come under pressure, with longer sales cycles contributing to a slowdown. The company says it is still too soon to realise any significant returns on investment in its new data centre.
The Africa region continues to be a growth opportunity, both in doing business through the group`s presence in Africa as well as performing work for the Africa based operations of existing customers.
Profit before exceptional items increased by 8,3% to R66,8-million, compared to R61,7-million for the same period in 2006.

Global growth consulting company Frost & Sullivan believes that Business Connexion (BCX) should consolidate its industry position through further exploring the opportunities in international markets. The ICT service provider released its interim results today, noting that the African region as a whole continues to be an excellent growth opportunity for the business.
BCX recorded revenues of R124.4-million through operations in Africa outside of South Africa, an increase of 5.25% on the comparable period last year. The company’s UK operations also grew strongly, up nearly 60% on the comparable period from last year to R34.5-million.
“BCX already has five country offices outside of South Africa,” says the head of Frost & Sullivan’s ICT practice in Africa, Corrie Froehlich. “With the phenomenal growth rate of the ICT sector in Africa, coupled with very good opportunities for converged systems, BCX is poised for significant horizontal and vertical integration.”
BCX is a leading integrator of innovative business solutions through its five part “Solutions Integration Model”. Its ability to design and implement practical business solutions has seen it win tenders from public and private sector organisations in a number of African countries.
However, BCX still faces the challenge of a highly competitive market in which companies struggle to remain relevant as cross-industry technology partners.
“While its business model has so far successfully ensured its visibility and credibility, the challenge still remains for BCX to enhance its potential and offer innovative and integrated solutions that will continue to set it apart,” Froehlich says.
Recent analysis of the South African unified communications and messaging markets by Frost & Sullivan identified that BCX has a competitive edge as a systems integrator in this sector. The company has the envied capability to deploy a diverse range of products from vendors such as Microsoft, Cisco, Avaya and Nortel. BCX stands as a formidable competitor in the ICT space through its phased approach in the migration of legacy ICT infrastructure to next generation unified communication systems.