Gijima postpones FY results

ICT services company Gijima Group has postponed its annual results.

Initially due for release on 23 August, the group did not cite any reasons for the delay, adding that it would provide details in due course.

At the end of June, Gijima warned that contract losses would have a material impact on its results for the year ended June 2013. It noted, however, that it would deliver a similar level of revenue to that of R2.566 billion reported in 2011.

Gijima lost its SITA SAPS contract, along with the insource of a significant portion of a contract with Absa.

Gijima said it 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 thereof, culminating in a month-to-month agreement for the provision of the services from November 2011.

It added that these short-term arrangements were in place while SITA conducted the tender process for the award of a subsequent three-year contract for the break-fix services to SAPS.

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

In February, Gijima also launched an internal optimisation programme, aimed at improving its efficiency and reducing its cost base. It said that people initiatives were prioritised to firstly address the contractor base of the company, and subsequently on reducing the number of its permanent employees.

Gijima said that the cost of the people optimisation would be reflected in the results for the year ending 30 June 2012.

For the year ending June 2012, revenue for Gijima declined by 12.8% to R2.56 billion, with earnings before interest, tax, depreciation and amortisation (Ebitda) reflecting a loss of R211.8 million.

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Gijima postpones FY results