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Gijima profits looking healthyBy Tom Manners 28 September 2010 | Categories: news
ICT technology developer Gijima today announced increased profits for the year to end June 2010, overcoming challenging conditions and a slight decline in revenue for the year.
Headline earnings per share increased to 16.44 cents.
The improved profits were achieved despite Gijima recording a 2.4% decline in revenue to R2.9 billion from R3.0 billion in the previous financial year.
A final cash dividend of 2.5 cents per share was declared, bringing the total dividend for the year to 5 cents per share, the same as the 2009 dividend.
“We are satisfied with this achievement although disappointed at the slight drop in revenue, for which there were specific reasons. The results bear testimony to Gijima’s business model resilience in difficult market conditions, and to a continuous improvement in efficiencies. This has enabled us to increase profits on lower revenues,” said Jonas Bogoshi, chief executive officer of Gijima.
“Although the increase in profits and headline earnings was more modest than had been anticipated at the half-year stage, it continues Gijima’s sustained and sustainable growth across successive business cycles. Both of our operating divisions increased their EBITDA margins, with an overall real increase of 2% for the company to 9.7%.”
Bogoshi noted that Gijima had once again been shielded from adverse market conditions by the fact that the company has focused on higher margin services, and that the bulk of its revenue is annuity income from multi-year contracts. Services constitute 84% of Gijima’s business.
“Gijima is now a focused ICT services group, with a predominant and growing proportion of its earnings coming from designing and implementing services that meet client needs in South Africa and those of mining industry clients in five continents. We are seeing renewed interest in our world leading mining technology. Our goal is to be a global IT player anchored in Africa,” he said.
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