DigiCore (DGC) has finished its management restructuring, welcoming two former executives back into the fold – a move which investors believe means good news for the fleet management company.
After taking over the role of CEO in June 2011, DigiCore chief, Barney Esterhuyzen took up the mandate of restructuring the company’s management.
The changes were to introducing new blood into the company, and also saw the return of two senior executives “to bolster the management team’s industry experience,” according to the group.
The restructuring saw the return of Bruce Richards, now the managing director of South African operations, and Ré Voogt, who has taken over the role of CFO after Francois Schindehutte resigned as group financial director in January 2012.
Richard Middleton, portfolio manager at Investec Asset Management, described the executives’ return as a good sign for the company.
“This is very encouraging as they have obviously bought into the prospects for the company,” he said.
He went on to describe DigiCore as “a company offering huge amounts of ‘blue sky’ potential,” citing the company’s global footprint and business model as further reasons behind the positive outlook.
“Over the past few years they have changed their business model to a 50/50 split between product sales and annuity revenue, which will shield them in the event of another global economic slow-down,” he added.
“We’re expecting a return of 16% over the next 12 months.”
Speaking to MyBroadband BusinessTech, Digicore said that it is in the midst of reinventing itself, and is satisfied with the individual components of the new management team, as well as their collective strengths.
Through acquisitions in the UK and growth over the past year, the company now has representation in 50 countries, and is looking for further opportunities.
“The new management team has worked hard to ready the company for these opportunities and has also spent a significant amount of money on preparing the business to deliver on the opportunity.”
“Management is excited about the prospects in the next three years and will continue to drive the company’s transition into a global telematics machine-2-machine communication solutions provider in partnership with major mobile telephony groups,” concluded DigiCore.