Gijima highlights improved cash balance
Listed ICT company Gijima Group (GIJ) on Tuesday (February 21, 2012), pointed to an improvement in its cash balance to R199 million, from R86 million before.
The group returned to profit, reporting diluted headline earnings per share of 3.11 cents for the six month ended December 2011 after a loss of 28.13 cents a year ago.
Revenue increased by 7.5% to 1.337 billion, with earnings before interest, tax, depreciation and amortisation reflecting an 83.5% at R78.2 million.
Jonas Bogoshi, CEO of Gijima said: “We are not happy with the numbers, they fell below our expectations,” however, he added: “what is pleasing for us is our cash balance.”
The group said its gearing ratio improved to 1.01 times from 1.61 times at June 30, 2011, with EBITDA margins at 5.8%. “EBITDA margins are not where we want to be, we want double digits in the short-term,” Bogoshi said at a results presentation in Sandton.
The group is in the process of providing its staff of some 3,800 people with Apple iPads as part of a restructure to improve business proficiency – with 60% already receiving the device.
Gijima said its organisational restructure has been completed, although it is four months behind implementation. Phase two is expected to commence in the second half of the year.
In October, Gijima was appointed as the first authorised systems integrator (SI) for Apple in South Africa. The group would assist with the support for Apple hardware and software solutions that work with company-managed systems. “The partnership with Apple is going very well for us,” Bogoshi said and looking ahead, he added: “it’s a focus for us.”
“Where we are focussing on, is changing the culture of the business. It’s going to take time to imbed it,” Bogoshi said. He noted that it was causing some uncertainty, “but it’s the right thing to do.”
No dividend was declared by Gijima, but the resumption of payment of dividends will be reviewed by the board in future, it said.
“The convergence of IT and Telecoms, along with the rapid upgrades and refreshing of technology, is also driving the IT growth. The mobility wave should not be ignored, which is also being heavily influenced by executives adoption along with Bring Your Own Device philosophies being increasingly adopted across enterprise,” Gijima said.
Loading ...