GijimaAst today announced growth in its first-half earnings and strong improvement in margins and cash reserves, despite the group’s slight decline in total revenues.
“We have weathered the downturn very well so far, assisted by the fact that the bulk of our income is contractually guaranteed multi-year or annuity income”, said CEO of GijimaAst, Jonas Bogoshi.
The reported increase in headline earnings was 106% compared to last year’s first-half results and included an exchange rate translation loss on consolidation of intercompany loan accounts.
The company’s earnings before interest, tax, depreciation and amortisation (EBITDA), increased by 62% to R156,7 million for the six months ending December 2009 and net cash balances were up 85% to R623 million in the same period.
EBITDA margin improved to 10,9% from 8,6% in December 2008 and 9,4% at year-end in June 2009.
The improvement in margins was particularly noticeable in the Group’s principal revenue earner, the Professional Services division. Profit increased by 34% to R87 million despite revenue being 5% lower at R732 million. Overall, revenue was down 3,6% to R1,44 billion from R1,49 billion in December 2008.
Bogoshi said the company has been able to improve profits significantly on slightly lower revenue in the current uncertain market conditions and that it has already “achieved 77% of the headline earnings recorded in the full 2009 financial year”.
GijimaAst is a South African information and communications technology (ICT) services company, listed on the JSE Limited (JSE). The company provides IT solutions to both the private (financial services, retail, manufacturing and mining) and public sectors.
