Listed ICT service provider, Gijima has reported a 19% fall in revenue for the interim period ended December 2013, citing a continued tough market, the full effect of the expiry of two significant contracts from FY 2012, as well as customer delays in awarding contracts.<\/p>\n
Revenue from continuing operations fell to R741 million, from R911 million in 2012, however, the group narrowed its operating loss to R17.7 million, from R123 million before.<\/p>\n
Gijima reported a diluted headline loss per ordinary share of 6.98 cents, from a prior loss of 211.67 cents.<\/p>\n
The group said that business profitability has improved significantly, with earnings before interest, taxes, depreciation, and amortisation showing a positive result of R2.7 million, from a R100 million loss in the comparative period up to December 2012.<\/p>\n
Gijima said that over the last 12 months, R1.6 billion from the renewal of contracts together with, in some instances an increased scope, has been concluded.<\/p>\n
“This is an important indication that the continued efforts to attract, and retain significant clients, even in the face of stiff opposition, demonstrate our capability and are a testament to our ability to provide service delivery excellence,” it said.<\/p>\n
Gijima said its efficiency drive has resulted in the achievement of targeted cost savings of some R200 million per annum. This was achieved without exceeding the industry norm in terms of staff turnover, it said.<\/p>\n
Looking ahead, Gijima said that new markets are being explored, specifically in Africa and in State Owned Entities which are beginning to show traction.<\/p>\n
Gijima counts 14 of the top 25 JSE listed companies as clients. “The turnaround strategy is showing significant progress in terms of cost reduction and a return to profitability,” it said.<\/p>\n
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