Listed investment company Morvest is set to launch an online portal with walk-in stores in all major centres as it seeks to diversify its offerings.

The company yesterday reported its interim results for the six months to November and said revenue grew to R445.8 million, from R411 million a year ago. The group reported net revenue of R39 million, a gain on the previous first-half`s R28.8 million.

Morvest`s Business Support Services division contributed 62% of group turnover, and its ICT unit contributed the balance.

The company says it will continue with its diversification strategy, which includes exploring new markets and territories, as well as expanding into the retail and services industries. It plans to launch a new online portal with walk-in stores in all major centres as part of its strategy to diversify into retail, it says.

Looking north

CEO Mohammed Varachia says the company will continue to look for expansion opportunities in Africa. “We intend to grow our footprint in Nigeria and the region, particularly in infrastructure and manpower development, through partnering with local companies and possible acquisitions,” he says.

Morvest already has a presence in Nigeria, where it has been providing SIM and scratch cards to major cellphone operators for about six years. It also has operations in Mozambique, India and the US.

The company expects tough market conditions and pricing pressure from clients to continue and is focused on trimming costs by another 10%. Varachia says the company does not “anticipate any real improvement in local conditions or lightening of pricing pressure in the medium term”.

During the half-year, Morvest improved earnings before interest, tax, depreciation and amortisation from R60 million to R73 million.

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