Gijima delays interims again

·25 Mar 2013

Listed IT service company Gijima has delayed publishing its interim results for a second time, raising concern about the current financial state of the business.

Shares in Gijima are currently priced at 19 cents on the JSE, valuing the company at R183.99 million, down from a year best level of 53 cents, and R1.27 recorded in February 2010.

The group was originally due to report its results for the six month period ended December 2012, on 20 February, but delayed that to today (Monday, 25 March), which has again been cancelled.

A spokesperson for Gijima told BusinessTech that the board was due to provide an update on a revised date today (25 March).

Earlier this month, an analyst said that investors struggle to see past reputational damage that has already been inflicted on Gijima over the past while.

Results forecast

In February, Gijima said it expects headline earnings per share for the six months ended December 2012, to reduce to a loss of between 10.30 and 10.90 cents from HEPS of 3.11 cents in 2011.

Gijima’s reported basic earnings per share for the six month period in 2012 are expected to reduce to a loss of between 2.25 cents and 2.85 cents from reported basic EPS of 3.10 cents in 2011.

In its final results ending June 2012, Gijima reported a decline in revenue to R2.5 billion (R2.6 billion).

Ebitda amounted to a loss of R517,000, from a prior loss of R211.8 million, and an operating loss of R49.1 million, from a loss of R258.2 million before.

“Gijima’s recent trading statement indicated that the turnaround being attempted at the Group continues to disappoint in both timing and quantum,” said Keith McLachlan, a senior equities analyst of small-and mid-caps at Thebe Stockbroking, and financial blogger at SmallCaps.co.za in a statement recently.

Eileen Wilton

CEO appointment

The group is also currently operating under the leadership of an interim CEO.

Jonas Bogoshi, Gijima’s former CEO stepped down from the group last year after five years at the helm. Eileen Wilton was then appointed as interim CEO, from her prior position as chief operating officer (COO) at the group.

Funding

In May 2102, Gijima secured an extension of its long-term debtors securitisation funding programme, initiated in July 2006.

The company issued R300 million class A secured debentures to investors in the capital markets.

The R300 million class A debentures comprise R150 million class A1 debentures maturing on 30 June 2015, and R150 million class A2 debentures maturing on 30 June 2012.