INFORMATION and communications technology group GijimaAST reported diluted headline earnings per share of 4.27c for the six months ended in December 2008 from 4.29c a year ago.<\/p>\n
Revenue grew by 25percent to R1.5-billion, while earnings before interest tax depreciation and amortisation before exchange rate gains and losses was up 67percent to R129-million.<\/p>\n
Operating profit grew to R80.16-million from R68.35-million. <\/p>\n
The company said the 25percent increase in revenue was achieved primarily through the strong growth of 60percent in the professional services division, which secured significant new business over the period.<\/p>\n
Cash generated from operations before working capital changes increased by 91percent as a result of improved operating performance. <\/p>\n
Looking ahead, the group said that the ICT industry in South Africa is increasingly challenging, with client sectors, such as mining, reducing capital spend. <\/p>\n
It is, however, projected that IT expenditure will grow at a compound annual growth rate (CAGR) of 9.7percent in the next five years, with IT services, in particular, growing at a CAGR of 11.7percent.<\/p>\n
This is driven primarily by government infrastructure spending and technology refresh cycles.<\/p>\n
GijimaAst said it was well positioned to weather the economic storm, due to increased public sector infrastructure spending and large annuity and services revenue streams.<\/p>\n
The economic downturn has forced many companies to review IT expenditure and evaluate ways to be more efficient. <\/p>\n
This augurs well for IT service providers who can innovate and can deploy alternative flexible service delivery models, it added.<\/p>\n
The skills shortage is one of the biggest inhibitors of growth in the industry, the company said. <\/p>\n