ConvergeNet Holdings has reported revenue of R551-million for the six months ended 28 February 2009, an increase of 30% over the same period a year ago. However, the group's gross profit margin decreased to 22,2% from 26%, mainly due to an increased product component in the business mix.
Basic earnings and headline earnings per share increased by 7% and 2% respectively, mainly as a result of acquisitions made during the prior period. Operating profit declined by 15% largely due to delays in project income which will now be reflected in the second half of the financial year, and to the deterioration in trading conditions caused by the overall economic malaise.
Operating expenses were also higher than expected for the period as a result of an increase in business development activities, which are expected to produce results in the forthcoming period.
During the six months, the group acquired a number of companies: Chrystalpine Investments 9, Tswelopele Technical Solutions and Mmele Consulting.