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Gijima reports a loss

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Published Sep 26, 2012

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Information‚ Communication and Technology (ICT) services group Gijima Group (GIJ) has reported a narrowing in its diluted headline loss per share to 5.27 cents for the year ended June 2012 from a loss of 21.65 cents a year ago.

Revenue was little changed at R2.53 billion from R2.57 billion a year ago‚ while its operating loss narrowed to R49.09 million from a loss of R258.16 million a year ago.

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The company said its results were significantly impacted by the cost of establishing its client centric business model‚ the loss of two significant contracts as well as the cost of an internal optimisation programme.

It has now completed the implementation of its new structure and its business model has been altered to reflect an organisation where client centricity is the primary focus. This positioning will allow for improved industry and client understanding to better translate solutions that differentiate it from its peers‚ it said.

As part of the re-organisation‚ Gijima has appointed several senior leading IT industry executives to drive the various client centric initiatives. The cost of establishing the client centric model amounted to R22.3 million.

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A significant contract was lost and a material portion of another key contract was insourced during the year‚ significantly impacting on revenue and profit.

No dividend has been declared for the year.

Looking ahead‚ Gijima said it has invested to position the group for stability‚ consolidation and growth. New generation services in the areas of mobility and cloud are starting to bear fruit.

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Gijima's mobility framework‚ which includes Mobile Device Management‚ application development along with the ability to integrate into existing legacy platforms is complete‚ and the market has begun to show good interest in the solutions.

Gijima's end-to-end security offerings are being positioned to target the significant pain-points being felt by large organisations today‚ particularly in the financial services industry.

These new generation services will also provide useful impetus to Gijima's traditional strength in the infrastructure space‚ it added.

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Despite the challenges in the 2012 financial year‚ management is confident that the remedial actions taken have positioned the company for an improved performance‚ it concluded. - I-Net Bridge

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