One move has seen it raise R100m from investors in the capital markets in a long-term debtors’ securitisation programme. It has refinanced its short-term debt facilities with longer-term secured finance at fixed rates for five years. <\/p>\n
Faritec said that was necessary as the company had grown its revenue organically and through acquisitions from R530m in 2006 to R1,1bn this year, raising it from R44m to R100m a month. That had happened without any increase in its credit facilities, so Faritec had been using expensive trade finance from its suppliers to help it manage working capital and trade credit facilities. <\/p>\n
Further acquisitions and organic growth would continue, and would also require stable funding at competitive rates. <\/p>\n
Faritec has secured the funding by issuing zaAA rated debentures on the strength of its debtors book of blue-chip clients. <\/p>\n
In the second move, the company has signed a R26m deal to acquire the business of Ubusha and its 30% stake in Linux System Dynamics. <\/p>\n
Ubusha supplies identity and access management solutions to the financial, telecoms and public sector, while Linux System Dynamics is an open source software specialist. <\/p>\n
The deal will grow Faritec’s presence in the field of identity and access management systems. It will pay R23m of the purchase price in cash and cover the remaining R3m by issuing new shares. <\/p>\n
Faritec has told investors to expect earnings and headline earnings per share for the year to June 30 to be 10,5c-11,5c. <\/p>\n
Last year it saw a substantial dip in its financial performance as bedding down two acquisitions proved harder than expected and distracted it from paying sufficient attention to customers. <\/p>\n
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