E Cape firm ups its turnover 31percent

EASTERN Cape financial and business services company IQuad Group grew its turnover 31% to R62.3 million during its maiden year as an AltX-listed company, the firm announced last week.

The past financial year has also seen the Port Elizabeth-based company expanding its footprint to East London after it bought 50% of financial service consultancy IDEC.

Another acquisition saw the company expand to Durban when it bought Entrepreneurs Survival Solutions (ESS), a provider of support services to small and medium enterprises, for R7.8m.

This resulted in IQuad’s after tax profit rising 32% to R16.9m and its Headline Earnings Per Share (HEPS) increasing by 17% to 65.5 cents a share. A final dividend at 20 cents a share has been declared, bringing the total dividend for the year to 30 cents – up 50% from 20 cents last year.

IQuad chief executive Trevor Hayter says the business’ four key areas – investment incentives; global trade services , business development services and verification services – had all shown solid growth over the year.

“Most of our growth in profits came from improvements in efficiencies and organic growth. However, we expect our start-up operations and recent acquisitions to contribute significantly more to our bottom line in future,” Hayter said.

“While we are expecting solid annuity income growth from our existing businesses in the coming year, we are particularly looking forward to assisting ESS in expanding its activities outside of KwaZulu-Natal, a prospect which holds great promise for us.”

Hayter remained upbeat about prospects for the coming year and expected IQuad’s “solid organic growth” to continue into the new year. The company has a sizeable cash pile and will consider acquiring complementary businesses to add to its range of services.

“We are eagerly awaiting the release of the Department of Trade and Industry’s new incentive, the Enterprise Growth Programme, that will replace the Small to Medium Enterprise Development Programme that was suspended in August 2006. That should inject additional stimulus into our investment incentive operation,” he said.

http://www.dispatch.co.za/article.aspx?id=187783

Business Financial Services

E Cape firm ups its turnover 31percent