/ 3 July 2007

IDC posts record profit

The Industrial Development Corporation (IDC) has posted a record profit of R4,345-billion for the financial year that ended on March 31.

Operating income was up to R2,645-billion from R378-million last year, the group said in a statement on Tuesday.

Capital gains of R1,796-billion, including R1,653-billion from the unbundling of Kumba Resources, contributed to the group’s profit.

Assets grew by 33%, ensuring a strong base for the IDC to continue delivering on its development activities.

The self-financing and state-owned development financier said activities for the year under review were expected to create more than 29 300 jobs and save over 3 900.

Performance was boosted by a boom in consumer spending, favourable market conditions and a strong performance in the listed and unlisted investments.

IDC chief executive Geoffrey Qhena said: ”Our job creation figure is 40% higher than the figure achieved in the previous financial year.”

The IDC said it contributed significantly to the equitable distribution of economic growth by supporting black economic empowerment (BEE) companies.

In the year under review, BEE accounted for 160 approvals with more than R3,4-billion in financing for BEE start-ups, or in the form of expansions of existing BEE enterprises. — Sapa