Gijima looks to turnaround strategy to improve results - CNBC Africa

Gijima looks to turnaround strategy to improve results

Earnings

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Gijima Group Limited is an information, communication and technology (ICT) services group. PHOTO: Getty Images

The information, communication and technology (ICT) services group saw revenue decrease from 911 million rand for the period ended 31 December 2012 to 741 million rand for the same period in 2013.

“A continued tough market, the full effect of the expiry of two significant contracts from FY 2012 as well as customer delays in awarding contracts, resulted in continued pressure to top line performance, with revenues 19 per cent down. However, business profitability has improved significantly, with EBITDA showing a positive result,” [DATA GIJ:Gijima Group Limited] said.

(WATCH VIDEO: Gijima appoints Eileen Wilton as new CEO)

“The turnaround activities progressed and reflect in the numbers as is evident in the EBITDA result. The efficiency drive has resulted in the achievement of targeted cost savings. This was achieved without exceeding the industry norm in terms of staff turnover. Strong focus in all areas of the business continues to ensure profitability and to provide a sound basis for growth.”

The company reported a profit before interest, tax, depreciation and amortisation charges (EBITDA) of two million rand in 2013 from a loss of 100 million rand in 2012.

It also reported a loss before tax of 27 million rand in the 2013 interim period from a loss of 141 million rand in 2012 and a diluted loss per ordinary share of 19.84 cents in 2013 from a loss of 222.31 cents in 2012.

(READ MORE: Business approach for S.Africa’s Gijima remains unchanged)

“The results of strategic decisions taken are proving that the company is forging its way back on track as it continues to build on service delivery excellence. New markets are also being explored, specifically in Africa and in state-owned entities which are beginning to show traction,” it said.

“Gijima counts 14 of the top 25 JSE listed companies as clients which is evidence that the company remains a key player in the ICT industry in South Africa. The turnaround strategy is showing significant progress in terms of cost reduction and a return to profitability.”

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