GijimaAst has reported that headline earnings per share for the six-month period ended 31 December were up 279%, with revenue gains of 18%. The company also signed some major new contracts for the period.
Operating profit increased by 114% compared with the same period last year, with an ongoing focus on streamlined and efficient delivery of services also contributing to increased operating margins of 5,7% compared to 3,2% the previous period.
Earnings per share improved by 263% to 4,36 cents compared to the previous period's 1,20 cents.
During the period, GijimaAst concluded a number of contract renewals with long standing clients and also benefited from strong deal flow. These included Total (South Africa); Anglo Platinum; the Airports Company of South Africa (ACSA) and SARS as well as the Department of Home Affairs' substantial implementation of the "Who am I Online" project.
As part of a SAP-led consortium, the company has also been awarded the first phase of the HR module of National Treasury's Integrated Financial Management System (IFMS) valued at more than R500-million.
The company's Managed Infrastructure Services division delivered growth of 22% in revenue to R659-million, with a 34% increase in operating profit. The unified communications businesses saw growth in both data and voice products and services, while hosting and data centre services delivered a good performance with the renewal of several long-term support contracts.
GijimaAst's Software and Professional Services division benefited from increased ICT spending, including significant public sector contracts, with revenue increasing 19% to R365-million and operating projit up from R6-million to R17-million.
The company's Industry Niche Solutions division turned around, with operating profit increasing from R2-million to R14-million, off a 3% revenue growth base. The mining technical solutions business delivered a record performance.
The historic cost benefits in the Corporate Support structure continued, with a 10% reduction in costs compared to the same period year.
Cash generated from operations before working capital changes more than doubled to R49-million compared to the same period last year.
“In a span of three years, GijimaAst has established itself as an accomplished home-grown ICT company,” notes the head of Frost & Sullivan’s African ICT practice Corrie Froehlich.
Froehlich points out that, as a home-grown BEE organisation, GijimaAst is continually in the spotlight. Its accomplishments only heighten awareness of the company and this raises the level of scrutiny placed on the organisation.
“It is not surprising that the company will have to proactively deal with critical press, adverse allegations and stakeholder sensitivity in the short and long term,” Froehlich says. “However, it continues to whether this storm while attracting high profile and innovative partnerships in a market in which it has come to stand with the best.”
Frost & Sullivan believes that, given its impressive growth and strategic alliances, GijimaAst may want to consider further growth opportunities beyond South Africa. It already has projects under its mining portfolio in economies such as Zimbabwe.
“Given its partnership with the South African Department of Home Affairs, it may attract the attention of several other African Countries who will be considering similar partnerships to implement their immigration systems in line with electronic governance,” Froehlich says.