Gijima released its interim results on 28 March 2013, revealing a sharp decline in revenue. Despite the poor results the company believes it is well positioned for growth.<\/p>\n
For the six months to December 31 2012, revenue from continuing operations was R911m, down from R1.1 billion in 2011. The operating loss from continuing operations was R123m, after a R33m operating profit.<\/p>\n
\u201cThis translated into a loss in headline earnings per share from continuing operations of 11.12c, compared with positive earnings of 1.47c in 2011,\u201d Gijima said.<\/p>\n
\u201cThis followed the expiry of a long term services contract, coupled with the decision by another long-term client to insource part of the services rendered by Gijima,\u201d the company said.<\/p>\n
Gijima said that during the reporting period, there was top-line pressure, which was exacerbated by a lack of revenue on a major project.<\/p>\n
Gijima 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. However, the new model has not yet yielded the desired levels of revenue generation.<\/p>\n
The implementation of initiatives to fix the company\u2019s cost base commenced in January 2013 and is expected to be finalised before the end of the current financial year.<\/p>\n
In addition the Board has decided to raise R150 million by way of a rights offer to qualifying Gijima shareholders.<\/p>\n
It is envisaged that sufficient equity capital will be raised through this rights offer to ensure that its funding covenants will be met and provide sufficient headroom to cater for unforeseen risks.<\/p>\n
The rights offer is expected to be concluded within the current financial year.<\/p>\n
Gijima said it is positive about the growth of the company and has secured a number of new contracts and has extended current contracts.<\/p>\n
\u201cGijima has received a firm commitment from 80% of its top clients to continue their relationship. Gijima has a full complement of 1037 clients,\u201d the company said.<\/p>\n
Gijima is in a hole: analyst<\/strong><\/a><\/p>\n Gijima still mired in red<\/strong><\/a><\/p>\n