Johannesburg - Investment holdings firm Huge Group said it would continue with its acquisition strategy despite the failure of its bid to buy a 100 percent of the issued share capital of Centracom for R81.6 million last year.
Huge, which offers fixed cellular routing solutions, said that it would consider more acquisitions after it was buoyed by a 45 percent increase in headline earnings a share for the year to February.
The group said it remained committed to finding more opportunities in media that would assist it in creating value from its investment in Eyeballs Mobile Advertising.
Huge recorded headline earnings a share of 18.51 cents for the year to February.
The company’s share price was R3.30 a share a year ago and it was trading at R5.20 at the end of the reporting period.
It said this price appreciation had significantly strengthened its ability to contemplate mergers and acquisitions on a share-for-share basis.
The company made its acquisitions intention clear in November when it was ready to pay 100 percent for the Centracom issued share capital.
The memorandum of agreement between the company and Centradel Group Investments, the owners of Centracom, lapsed in December before the deal could materialise.
Chief executive James Herbst said had the deal gone through, Huge Group would have enhanced its annuity revenue cash flows and boost its customer base by 20 percent.
Herbst said Huge Telecom was the group’s principal revenue and profit generator.
“In the past six years Huge Telecom has increased its gross profit percentage substantially. Its distribution channel has seen exponential growth – from 63 business partners in July 2010 to 552 business partners today,” he said.
Group operating profit for the year rose by 44.08 percent to R22.96m. Huge’s shares fell 1.92 percent to R5.10 on Friday.
BUSINESS REPORT