Huge Group closes in on empowerment deal
BUSINESS LIVE / 21 NOVEMBER 2019 - 09:02 / KARL GERNETZKY
The group is seeking to bolster it empowerment credentials as part of its growth strategy
ICT-focused Huge Group said on Thursday it was close to adopting a new empowerment transaction that should help boost its credentials in its pursuit of growth.
James Herbst. Picture: HUGE GROUP
Shareholders are expected to approve a B-BBEE transaction involving Huge Connect and Windfall on Monday, the company said, amid its “growing Huge strategy”.
This strategy aims to provide a platform for growth, including through building the company's profile and improving its empowerment credentials.
The transaction will involve Huge Connect, which provides payment services for 32,000 merchants, and Windfall. Windfall would ultimately own 16.296% of Huge Connect.
“We have built some of the capacity that we need to deliver our ‘growing Huge strategy’,” CEO James Herbst said. “The results have been very encouraging and bode well for the delivery of faster and more meaningful outcomes,” he said.
Huge Group reinstated its interim dividend to end-August, distributing 6.25c per share.
Total revenue in the group's six months to end-August rose 14% to R245m, with gross profit jumping 43% to R180m.
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