JSE-listed SecureData Holdings, which yesterday posted a 71% increase in revenues for the last financial year, is hoping to hoping to see a big increase in services revenue during the year ahead.
Chairman Dean Brazier tells IT-Online he is pleased with the fact that the group was able to report 23% of revenues from services and 43% of revenue being annuity, with 60% of revenue generated from the South African market and 40% from the UK.
The group had a shaky start to the year, with earnings sharply down in the first six months, followed by a management shake-up.
However, Brazier says the changes SecureData has put in place over the last six months are not simply a knee-jerk reaction to poor results it saw in the first six months of the year.
"They are long-term, sustainable improvements," he says. "The business is now fundamentally better run; revenue has grown, and in the right products; we've increased our margins; we've reduced net borrowings; and our services revenue now accounts for 23% of the total at about R100-million."
It's this service revenue that the group is hoping to grow, building on the success it has enjoyed in the UK by importing the systems and processes to the South African market.
Brazier points out that managed services already accounts for more than 20% of the group's UK revenues and it is now bringing the software, processes and know-how into the local market to further boost South African revenues.
"We are piloting with chosen business partners and customers and will then roll the offering out to our base of business partners."
He is confident the South African market is ready to embrace managed security services, and says SecureData wilkl offer customers a trusted and reliable infrastructure on which to build security services.
During the current financial year, Brazier expects SecureData to become cash-positive and hasn't ruled out the possibility of it making further acquisitions.