Total Client Services Limited (TCS), provider of technology, proprietary application software and specialised services to Local and Provincial Government authorities, listed on AltX yesterday. The share opened at 47 cents and was still trading at 47 cents at 12pm, with over 49 500 shares having traded.
TCS unbundled from its previous shareholder Labat. Its board of directors and management team expressed excitement about the company’s independent future and growth potential.
“TCS has many exciting plans in the pipe-line. We will continue to seek ways to stream-line road traffic law enforcement systems and grow our operations via enhanced product offerings," says Shaheed Mohamed, CEO of TCS.
"We aim to further entrench TCS as the supplier of choice to the law enforcement agencies of South Africa. Our value is portrayed by our results that achieve finalisation rates of 50-65%, well above the national average of 20%. We have no budget constraints as experienced by Government agencies and our services are implemented to local and provincial authorities at no cost for the infrastructure provided.
"Our diversification strategy will further enhance our services by adding risk and revenue management to our capabilities, tapping into South Africa’s revenue management market worth an astounding R50-billion."
Mvelaphanda Holdings became TCS’ strategic empowerment partner in October last year and has added value by assisting in formulating the company’s vision and future direction.
“Mvelaphanda played an incremental role in the strategy and listing of TCS. We look forward to a long and mutually beneficial relationship with them,” adds Mohamed.
The company’s revenue is earned on a fixed fee basis, based on the number of offences that have been finalised. TCS’ Revenue for the year ending February 2007 was R115-million. Forecast Revenue for the years ending February 2008 and 2009 are R119-million and R162-million respectively. The company has a forward PE of 6.2.
TCS will grow its revenue through organic growth and acquisitions, both of which require added infrastructure and therefore an increased level of financial commitment.
At the current share price, the company’s market capitalisation is around R180,28-million, with 383,569-million shares outstanding.