• 10 tips to find bargains

    Susan Erasmus gives advice on how bargain hunters can get the most bang for their buck.

  • Inside Labour

    Labour's bitter breaches need to be seen in historical context, says Terry Bell.

  • Rich getting richer

    Economists differ on how to tackle the chasm between rich and poor, says Leopold Scholtz.

Loading...
See More

Connection Group sheds software unit

Jun 18 2002 15:06
Johannesburg - The Connection Group on Tuesday said it had sold its 83.7% holding in Ultimate Connection to UCS Group for R18.3 million, to enable it to concentrate on its retail business.

The disposal includes R1.57 million in cash as well as the assumption by UCS of Ultimate Connection's overdraft of R16.7 million. In addition, should Ultimate Connection's performance over the next 12 months exceed forecast, Connection Group will be paid an additional amount of up to R4 million.

The sale means the Connection Group has eliminated all debt and will be in a positive cash position.

Three years ago, the group encountered serious difficulties and was burdened with debt of over R100 million. Today it is profitable, with a strong balance sheet.

Connection Group CE Pierre Joubert said Ultimate was an exceptional company but it fitted better into UCS, which, like Ultimate Connection, specialises in software.

"We sold it to focus on retail, to improve our cash position and strengthen our balance sheet."

Incredible Connection has 26 stores offering a wide variety of IT products in all the main centres. It holds 45% of the retail market. It intends to open four more stores in the current financial year and another five in 2004.

NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Comments have been closed for this article.
 

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:

SMALL BUSINESS

Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.
 
 

Top 10 richest musicians of all time

Check out the gallery to find out who they are!

 
 

Luxury living

Seven of the most expensive children's toys ever made
5 millionaires turned murderers
The youngest billionaires in the world and how they made it
Watch: Flying first class has never been this luxurious!

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How do you see your boss? He/sheis:

Previous results · Suggest a vote

Loading...