4Sight Holdings has reported a 16,9% increase in revenue for the six-month period ended 30 June 2021; revenue rose from R249,1-million in the same period last year to R291,1-million.
“Despite the challenging trading conditions and impact on potential growth due to the COVID-19 pandemic, we are pleased to announce stable financial results for the six-month period under review,” says states Tertius Zitzke, CEO of 4Sight Holdings.
“These past six months have been challenging for all businesses across our Group. Results were mixed. The performance of our IT cluster was particularly affected by the impact of the pandemic. Fortunately, the exceptional performance of our Business Environment (BE) cluster as well as the strong growth in our Channel Partner (CP) cluster, somewhat offset the disappointing IT cluster performance and improved overall Group results for the half year,” he adds.
“Our strategic digital modernisation projects stem from our decision to transform the enterprise. This strategy has favourably positioned 4Sight to pursue our preferred blue ocean strategy to capture new markets by meeting pandemic-fuelled trends around digital transformation and cloud technology adoption with existing solutions.”
According to Zitzke, 4Sight’s decision to create a modern digital workplace in January 2020, before the pandemic struck, helped to support continued revenue growth through the crisis.
With more companies transitioning their IT from a capital expenditure to operational expenditure model, 4Sight Holdings experienced a surge in demand for managed services and Software as a Service (SaaS) solution provisioning.
Rising demand for access to task automation solutions and application modernisation to empower employees, has also driven the cloud migration trend.
4Sight Holding’s BE cluster, formed in January 2020, accounts for a significant proportion of the company’s revenue growth over the period.
Strategic partnerships with key original equipment manufacturers (OEMs) and vendors have also supported the cluster’s double-digit growth.
According to Eric van der Merwe, chief financial officer at 4Sight Holdings: “Normalised earnings for continued operations increased for the six-month period ended 30 June 2021, from a loss of R725 360 reported for profit after tax for H1 2020 to a profit of R3 705 065 in H1 2021, more than a 100% improvement.
4Sight increased its working capital by R14,2-million for H1 2021 and this directly contributed to the decrease in cash balances during tough trading conditions by 19,1%.
While profit after tax was down 81,1% from the same period last year, Zitzke attributes this decline to once off entries accounted for in the prior period in 2020 relating to foreign exchange gains of R11,1-million on deferred vendor liabilities and the net gain of R6,7-million on the ETI program.”