{"id":34741,"date":"2013-04-02T13:09:56","date_gmt":"2013-04-02T11:09:56","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=34741"},"modified":"2013-04-03T09:03:30","modified_gmt":"2013-04-03T07:03:30","slug":"gijima-value-obliterated-in-morning-trade","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/it-services\/34741\/gijima-value-obliterated-in-morning-trade\/","title":{"rendered":"Gijima value obliterated in morning trade"},"content":{"rendered":"

ICT group Gijima<\/a> halved its value in a single morning of trade on the JSE after the group posted an interim loss of R123.36 million.<\/p>\n

By lunch on Tuesday, shares in Gijima had declined 46.67% – or seven cents – to eight cents giving the company a market cap of R77.47 million.<\/p>\n

Having twice delayed its interim results for the period ended December 2012, Gijima pushed out an announcement in very late trade on Thursday (28 March), ahead of the Easter weekend.<\/p>\n

Shares in Gijima have declined from a high of 36 cents at the start of the year, and a year best of 53 cents.<\/p>\n

Results<\/strong><\/p>\n

For the six months ended December 2012, Gijima reported a 23% decline in revenue from continuing operations.<\/p>\n

Revenue from continuing operations was R911 million, down from R1.1 billion in 2011, and the operating loss from continuing operations was R123 million, after a R33 million operating profit in 2012.<\/p>\n

This translated into a loss in headline earnings per share from continuing operations of 11.12 cents, compared with positive earnings of 1.47 cents in 2011.<\/p>\n

\"Gijima<\/a>

Gijima Operating Profit 2012\/2013<\/p><\/div>\n

Business focus<\/strong><\/p>\n

Gijima says it employs more than 2,500 professionals in more than 100 offices and service centres throughout southern Africa.<\/p>\n

The group bemoaned 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.<\/p>\n

The company noted that 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.<\/p>\n

\u201cHowever, the new model has not yet yielded the desired levels of revenue generation,\u201d it said.<\/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, Gijima said.<\/p>\n

Rights offer<\/strong><\/p>\n

Gijima said it has decided to raise R150 million by way of a rights offer in order to re-capitalise the company, to ensure compliance with all of its funding covenants under the securitisation and to finance its working capital requirements.<\/p>\n

The rights offer is expected to be concluded within the current financial year.<\/p>\n

\"Eileen<\/a>

Eileen Wilton<\/p><\/div>\n

CEO appointment<\/strong><\/p>\n

The group is also currently operating under the leadership of an interim CEO.<\/p>\n

Jonas Bogoshi<\/a>, Gijima\u2019s former CEO stepped down from the group last year after five years at the helm. Eileen Wilton<\/a> was then appointed as interim CEO, from her prior position as chief operating officer (COO) at the group.<\/p>\n

Future outlook<\/strong><\/p>\n

Gijima said it remains 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 1,037 clients,\u201d it said.<\/p>\n

More on Gijima<\/h3>\n

Gijima delays interims again<\/strong><\/a><\/p>\n

Gijima in the red<\/strong><\/a><\/p>\n

Gijima is in a hole: analyst<\/strong><\/a><\/p>\n

Gijima still mired in red<\/strong><\/a><\/p>\n

Gijima appoints interim CEO\u00a0<\/strong><\/a><\/p>\n

Gijima to cast wide net for new CEO<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

ICT group Gijima halved its value in a single morning of trade on the JSE after the group posted an interim loss of R123.36 million.<\/p>\n","protected":false},"author":9,"featured_media":20297,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[641,26,767],"class_list":["post-34741","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-it-services","tag-gijima","tag-headline","tag-ict"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/34741","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=34741"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/34741\/revisions"}],"predecessor-version":[{"id":34745,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/34741\/revisions\/34745"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/20297"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=34741"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=34741"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=34741"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}