Johannesburg - In a major turnaround, top-ranked black investment holding company Sekunjalo (SKJ) on Thursday reported a 111% increase in headline earnings per share to 0.55c for the half year ended February compared to a 4.90c per share loss for the previous comparable six months.
Sekunjalo executive chairperson, Dr Iqbal Survé, said the significant turnaround has been due to restructuring of the group, greater efficiencies of businesses, decentralisation of business units, new markets for the groups businesses and significant new government contracts.
Sekunjalo's operating profit went from a loss of R43.5m in 2008 to an operating profit of R14.2m in 2009.
Survé said "the restructuring of the group into a decentralised operation has decreased corporate overheads and created efficiencies in the various business units".
Premier Fishing, one of the largest black-owned fishing companies in the country, produced a superb performance compared to the previous financial year. The positive performance was underpinned by reduced fuel costs, strong catching across all fishing rights, maintenance of pricing levels despite the global crisis as well as a favourable rand/dollar exchange rate.
Peter van Zyl, the group commercial director, said "the group's informatics division has performed well across its subsidiaries, synergy Business Intelligence, FIOS, Saratoga Software as well as being awarded new government contracts in Health System Technologies."
He also emphasized that the Financial Services division showed a significant turnaround to the previous year. The restructuring of this division resulted in a profitable performance despite some once-off items.
Sekunjalo has strengthened its pharmaceutical business through the growth of its partnership with Julphar Gulf Pharmaceuticals and increased focus on its own brands namely, betnovate, fortum, dermovate and becotide.
The group's biotechnology business continues to be the top ranked biotech company in Africa and has made significant strides in increasing its manufacturing capabilities as well as growing its distribution channels into new markets.
The group's investment in aquaculture continues to grow amid investment into its infrastructure to enable a greater stock holding of biological assets.
Survé said "the aquaculture business is now well positioned to expand into new areas and explore new technologies".
The group's partnership with global giant British Telecom continues to perform exceptionally well. In addition, the Cape Town International Jazz Festival was again a great success in 2009 and the group looks forward to its positive contribution at year-end.
Concluded Survé: "The group's prospects are excellent because it has low gearing, strong asset base, strong cash flow from the subsidiaries, high growth investments along with a credible black empowerment status which makes it a partner of choice for global companies."
The group's pre-eminent black economic empowerment status and World Economic Forum New Champion Founder Member has opened doors for it on an African and global scale.
- I-Net Bridge