Is BCX in trouble?

[sox63]

http://www.itweb.co.za/sections/financial/2008/0802271054.asp?O=FPTOP&S=Business&A=BUS

The figures just do not make any sense, an operating profit of R 41m from revenues of R 2 Billion.

The extent of that Telkom merger breakdown is becoming ever more evident.

 

[ToxicBunny]

The margins in the market that BCX are operating in are VERY thin... so I'm not entirely surprised by those numbers, but they could be a HELL of a lot better

 

[sox63]

The margins in the market that BCX are operating in are VERY thin... so I'm not entirely surprised by those numbers, but they could be a HELL of a lot better

Toxic, BCX is one of the most prominent services guys out there, and I doubt on their margins they go at anything less that 10%. If they were a product centric shop I would agree, but they should be sitting at a R 200m. OK there was the SAP thing and the new Data Centre, but that could not be more than R 100m.

I wonder if they are losing clients.

 

[ToxicBunny]

They are losing clients, for sure...

But i think you might find the SAP and Data Centre thing cost them a pretty packet, and operating costs during "load shedding" are ALOT higher than normal... atm alot of things are working against companies making a profit.