Despite turning in a slump in revenue in the six months ended 31 December 2013, troubled technology services company Gijima appears finally to be having at least some success in righting the ship.
But it’s not quite clear of the rocks yet. Revenue from continuing operations fell by 19% to R741,3m, from R911,2m the same six-month period in 2012. The top line remains under pressure, it warns.
The loss for the period, also from continuing operations, was reduced to R24,8m, from R106,2m a year ago.
Earnings before interest, tax, depreciation and amortisation was a positive R2,7m, from a R100m loss before.
It reported a noticeably improved headline loss per share of 6,97c, from a loss of 191,86c previously. It ended the period with R124,1m in cash, from R89,1m previously. Net cash used in operating activities was R48,4m, a reduction over the R123,2m used a year earlier.
However, the company, which is still reeling from the loss of important contracts warns that the market continues to be “tough”.
The full impact of the expiry of two significant contracts from the 2012 financial year, as well as customer delays in awarding contracts, have led to “continued pressure to top-line performance”.
However, in the past 12 months, R1,6bn has been secured through contract renewals, Gijima says. In some instances, these have been renewed with increased scope.
The company, which last year was forced to do a rights offer to raise money from shareholders, says it has achieved cost savings of about R200m/year. This was done “without exceeding the industry norm in terms of staff turnover”.
Gijima says it is now exploring new opportunities, specifically in Africa and in state-owned enterprises. — (c) 2014 NewsCentral Media
