Asha Speckman
Listed vehicle tracking and recovery business MiX Telematics, which yesterday reported its first R1 billion full-year revenue achievement in the company’s history, expected to derive growth over the next six to 12 months in a maturing local market from its new Beam-e product, chief executive Stefan Joselowitz said yesterday.
The device had attracted international interest and plans were afoot to export it to other developing countries, Joselowitz added.
“It will be in a developing country. It will have to have similar demographics to South Africa – high crime. It will probably be in South America or eastern Europe. It won’t be in Europe or North America,” he said yesterday, without providing details.
MiX Telematics, the home of the high-end Matrix brand, is looking to complement its vehicle tracking business with Beam-e, a device geared towards the higher-volume, low-cost stolen vehicle recovery market that the company has traditionally not been exposed to.
Joselowitz said the product was unique as it was wireless and cheaper to roll out, costing below R90 a unit, and it would position MiX Telematics to aggressively grow its market share. “The installation cost is very much lower than the traditional products. A large part of the cost is paying someone to spend two or three hours to install a new device.”
The group envisaged growth from asset owners wanting to protect bicycles, motorbikes, trailers and containers.
Growth is also expected from activities in Africa, where the group opened a permanent sales office in Uganda during the past year to March, as the company seeks business in the oil and gas, and mining and exploration industries.
The group said that orders were strong from multinationals that owned fleets operating in east Africa.
Joselowitz said although the group aimed to expand in the region, it would not open new offices in this financial year.
For the year to March, group revenue increased 14.8 percent to R1.02bn. The company operates in 110 countries worldwide.
Annuity revenue, which makes up more than 56 percent of group revenue, grew to R577m from R503m. Foreign currency revenue jumped from R368m in 2011 to R482m, representing 47 percent of revenue.
Joselowitz said two deals to fit devices in a cumulative 2 950 buses in the UK and Europe would carry the European operations through the euro zone financial crisis.
A dividend of 8c a share was declared.
The shares surged 8.11 percent to close at R2 yesterday.