SecureData swings back into profit
SecureData, which operates in the information security field‚ has reported a return to profit for the six months ended January 2013 following a major restructure which saw the group reduce its headcount from 140 to 96.
Revenue for the interim period advanced to R138.1 million, from R119.5 million, while the group reported a profit before taxation of R3.17 million, from a prior loss of R1.0068 million.
SecureData noted headline earnings per share of 1.0 cents from 3.9 cents in 2012.
From May 2012, SecureData said it undertook an extensive restructuring programme and a major overhaul of its leadership team.
“This process has now been completed and the leadership is functioning as an optimised team. With all legacy issues resolved the team has now been able to focus on the operation and growth of the business.”
“Group headcount has reduced from 140 to 96. Certain products and services were discontinued, and other new ones introduced. Experienced senior personnel were hired to strengthen the team,” it said.
Group ebitda from continuing operations increased to R850,000 (2012: R280,000) on revenues from continuing operations that increased to R138.1 million (2012: R119.5 million).
“The increase in revenue is due to focussing on the generation of new business in partnership with our channel resellers.
The net cash position of the group improved significantly, when compared to the same period ending 31 January 2012, to R41.0 million (2012: R400,000) following the sale of SecureData Europe.
The sale enabled the group to return excess sale proceeds to shareholders by way of a capital reduction of 25 cents per share.
Looking ahead, SecureData said that while technology renewal revenue remains important, the focus has turned to the generation of new business in partnership with channel resellers.
“This effort is starting to bear fruit and we are seeing the beginnings of some material growth. Any growth will focus on higher margin business opportunities and will be prudently managed so not to stretch the resources of the business,” it said.
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