SecureData Holdings, has reported robust growth for the year ended 31July 2008, with revenues climbing 83% to R271-million.
Group EBITDA remained static at R360million, resulting in an EBITDA margin of 14%. The year was marred by weaker than expected performance by the group's SecureData Africa division, although the division has increased its market share in South Africa and taken steps to improve its performance.
About R29-million (11%) of group revenue was derived from a two-month contribution by MIS-CDS, a UK-based information security solution provider that SecureData acquired, effective 2008.
SensePost, which provides independent information security assessment services, turned in a pleasing performance with revenue of R18-million and a 38% EBITDA. About a quarter of SensePost revenues were generated outside South Africa and SecureData expects to grow this business' offshore revenues during the next financial year.
SecureData CEO Dean Brazier comments: "Despite tough trading conditions, SecureData made significant progress towards achieving its vision of becoming a dominant provider of information risk management (IRM) solutions and services.
"We have made the necessary moves to correct imbalances in SecureData Africa's product portfolio and are confident of an improved performance from this business in the coming period."
Looking ahead to the next financial year, the inclusion of a full set of results from MIS-CDS should result in a significant boost to group revenues and earnings. Pro-forma results for the year ended 31 July 2008 indicate that SecureData revenues would have topped R426, 9 million and EBITDA would have reached R52,2-million if full-year results of MIS-CDS had been included in the group results.
"The information risk management market has historically proved to be quite resilient during downturns in the economic cycle although it is clearly not immune to changes in the cycle," adds Brazier. "It is difficult at this stage to predict to what extent current financial market turmoil will impact buyer activity.
"However, the board believes the group is well positioned to take advantage of attractive opportunities within this sector well into the future. The addition of an offshore revenue stream also provides us with a significant rand hedge."