A strong second half performance has seen SecureData post strong annual results, with group revenue up 71% to R464,6-million from R271,3-million and a 57% increase in EBITDA to R57,3-million from R36,5-million.
“I believe this is a solid performance after a poor first half," says SecureData CEO Dean Brazier. "Although the economic operating environment remains volatile, the company has historically proven to be resilient to the economic cycle. SecureData is firmly positioned to exploit its advantages in its selected markets.”
In a statement, the company says that although revenue was evenly split between the first and second halves of the financial year, 67% of EBITDA was achieved during the second half. This, it adds, was primarily attributable to the restructuring of the South African operations undertaken in January 2009 and its subsequent stabilisation, as well as to the improved execution of its UK subsidiary MIS-CDS in a turbulent economic environment.
Services revenues, the bulk of which are monthly billed managed services, were in excess of R100-million, accounting for a greater share, 23% of revenue, than any specific technology or product. Revenue generated outside of South Africa climbed to 40% and annuity revenue was a healthy 43%.
"After a period of operational decline the company launched a number of key initiatives in January 2009 with the view to improving performance at SecureData Africa," the company says. "Key amongst these were a senior management restructuring process, which included the appointment of Tony Nutter as MD, a detailed analysis of operating expenses and a complete product portfolio review.
"It is evident from the full analysis of available data and subsequent results that these initiatives were both necessary and implemented at the appropriate time. Of the full 12 month EBITDA of R37-million only R10-million was recorded for the first six months ended 31 January 2009 with R27-million (or 73%) occurring in the second six month period. The strong second half segment result is testament to the tenacity of the staff of the company, the successful restructuring and the robustness of the business model. A special mention should also be made of New Generation Solutions (NGS), a subsidiary of SecureData Africa, for achieving in excess of 200% EBITDA growth in the period under review.
"Management is confident that with the restructure significantly advanced and having consequently achieved good earnings growth, SecureData Africa has the staff and management required to sustain its solid performance into the future," the company says.