{"id":46833,"date":"2013-09-30T11:34:15","date_gmt":"2013-09-30T09:34:15","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=46833"},"modified":"2013-10-01T09:35:44","modified_gmt":"2013-10-01T07:35:44","slug":"gijima-suffers-heavy-loss","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/it-services\/46833\/gijima-suffers-heavy-loss\/","title":{"rendered":"Gijima suffers heavy loss"},"content":{"rendered":"

Gijima<\/a>, the troubled JSE-listed ICT company, has on Monday reported a R210.76 million loss for year ended June 2013, from a prior loss of R50.59 million in 2012.<\/p>\n

The group said that the loss of two\u00a0significant contracts that expired after several years of delivery in the previous financial year, a tough market and significant\u00a0top-line pressure on a major project, contributed to a challenging financial year.<\/p>\n

The loss from\u00a0continuing operations amounted to R293.23 million, while profit from discontinued operations rose to R82.47 million.<\/p>\n

Gijima reported diluted headline loss per ordinary share of 25.82 cents, from a prior loss of 5.28 cents.<\/p>\n

Revenue from continuing operations declined to R1.848 billion, from R2.22 billion, with an operating loss from continued operations at R335.6 million, from R72.1 million in 2012.<\/p>\n

\"Gijima<\/a>

Gijima loss<\/p><\/div>\n

Gijima said that in terms of normal operations, the loss incurred in the second half of FY 2013 of R10 million, was significantly reduced\u00a0compared to the first half. “This shows that significant traction in terms of the turnaround strategy has been achieved,” it said.<\/p>\n

Gijima successfully concluded a fully underwritten R150 million rights offer, on 21 June 2013. The rights offer was subscribed to by 83% of the shareholders and raised R135 million\u00a0after expenses\u00a0with long-standing\u00a0major shareholders GUMA (R75 million), Allan Gray (R35 million), Investec (R15 million) and FutureGrowth\u00a0(R6 million) contributing.<\/p>\n

Looking ahead,\u00a0Gijima said it is confident that 2014 will prove that the company took the correct strategic decisions and is back on track.\u00a0“It is well\u00a0advanced in implementing its turnaround strategies and will further capitalise on cost savings achieved this year.”<\/p>\n

Gijima said it has renewed all its major long term annuity contracts with key clients whose contracts became renewable during the\u00a0period under review.<\/p>\n

“Public sector continues to be a challenge as we await final adjudication by SITA on several tenders\u00a0submitted. Gijima continues to deliver products and services to the Department of Home Affairs’ Who Am I Online (WAIO) project,” it said.<\/p>\n

Gijima is still looking for a permanent CEO having appointed\u00a0Eileen Wilton<\/a>, who joined the group as\u00a0COO,\u00a0as interim CEO in October 2012.<\/p>\n

“We implemented refinements to the structure of the business model to improve our efficiencies. This included reducing and consolidating our service offerings to ensure a focus around the core competencies of the organization. The management and the board have been involved in a turnaround strategy of the company since June 2012,” said Robert Gumede<\/a>, Gijima chairman.<\/p>\n

“The board has been happy with the leadership role that is played by both Eileen and Liesl since their appointment in their current roles. They have worked well with the Board as they the charge by management, as the company embarks on this journey to restore it to its former glory. Our major shareholders have also indicated their support of our turnaround strategy and management team that will drive the new business strategy,” Gumede said.<\/p>\n

The group consolidated its stock in July,\u00a0reducing the number of shares in issue on a one for 20 basis, moving its listing price from 6 cents to 106 cents per share.<\/p>\n

Shares in Gijima traded at 93 cents in Midday trade on the JSE Monday.<\/p>\n

More news on Gijima<\/h3>\n

Gijima sees wider losses<\/strong><\/a><\/p>\n

Gijima CFO steps down<\/strong><\/a><\/p>\n

Gijima steps towards turnaround<\/strong><\/a><\/p>\n

Gijima rights offer results<\/strong><\/a><\/p>\n

Gijima to cut staff count by 10%<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Gijima reported a R210.8 million loss for year ended June 2013, from a prior loss of R50.6 million in 2012.<\/p>\n","protected":false},"author":10,"featured_media":20297,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[6756,6757,641,26,1498],"class_list":["post-46833","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-it-services","tag-allan-gray","tag-futuregrowth","tag-gijima","tag-headline","tag-investec"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/46833","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\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=46833"}],"version-history":[{"count":15,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/46833\/revisions"}],"predecessor-version":[{"id":46921,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/46833\/revisions\/46921"}],"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=46833"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=46833"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=46833"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}