Gijima CEO steps down

Jonas Bogoshi, chief executive officer of ICT services group, Gijima, has announced his resignation from the group.

“The Gijima Board wishes to announce the resignation of the chief executive officer of Gijima, Mr Jonas Bogoshi, effective 31 December 2012. While there will be a formal handover period of three months, the board would like to take this opportunity to thank Mr Bogoshi for his hard work over the past five years and wishes him well in his pursuit of new endeavours,” Gijima said in a statement on Wednesday (26 September).

Also on Wednesday, Gijima reported a decline in revenue for the 12 months ended 30 June 2012, to R2.53 billion, from R2.56 billion in 2011; but the group reduced its operating loss to R49.1 million, from R258.2 million before.

The group recorded a diluted loss per ordinary share of 5.28 cents, from a prior loss of 21.76 cents; and a diluted headline loss per ordinary share of 5.27 cents, from a loss of 21.65 cents in 2011.

The company said its results were significantly impacted by the cost of establishing its client-centric business model, the loss of two significant contracts, as well as the cost of an internal optimisation programme.

The company said it has completed the implementation of its new structure, and its business model has been altered to reflect an organisation where client centricity is the primary focus. The cost of establishing the client-centric model amounted to R22.3 million.

The group said that a significant contract was lost and a material portion of another key contract was insourced during the 12 months ended 30 June 2012.

Gijima had been rendering hardware break-fix services to the South African Police Services (SAPS) since 2002. Following the expiry of the latest three-year term of the SITA 433 Contract in 2009, Gijima and SITA entered into several short-term extensions.

On 25 January 2012, however, Gijima received notification from SITA that a new service provider would take over the month-to-month provision of services from 1 February 2012.

A new tender for these services is expected to be issued for SAPS in the near future that will replace the current month-to-month agreement. “Gijima is well-positioned to respond to this tender,” it said.

The group also lost a significant contract with Absa during the reporting period.

Gijima launched an internal optimisation programme in February 2012. The company’s headcount, once the programme has been completed, is expected to reduce by some 700 employees from the 3,902 employees at the start of the financial year.

Of this reduction, approximately 200 employees reduced were through retrenchment, with the balance of the reduction coming from the Absa insource, contractor terminations and natural attrition. The cost of the people optimisation of R38.3 million is reflected in the results for the year ended 30 June 2012.

Looking ahead, Gijima said it has invested to position the group for stability, consolidation and growth.

“New generation services in the areas of mobility and cloud are starting to bear fruit. Gijima’s mobility framework, which includes Mobile Device Management, application development along with the ability to integrate into existing legacy platforms is complete, and the market has begun to show good interest in the solutions,” it said.

The group added that its end-to-end security offerings are being positioned to target the significant pain-points being felt by large organisations today, particularly in the financial services industry.

“These new generation services will also provide useful impetus to Gijima’s traditional strength in the infrastructure space.”

“Despite the challenges in the 2012 financial year, management is confident that the remedial actions taken have positioned the company for an improved performance,” Gijima said.

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Gijima CEO steps down