Wrap Text
Provisional report for the year ended 30 June 2013
Gijima Group Limited
(previously Gijima Ast Group Limited)
Registration number 1998/021790/06
Share code: GIJ ISIN: ZAE000176533
("Gijima" or "the Group" or "the Company")
Provisional report
for the year ended
30 June 2013
Highlights
- R150 million rights offer concluded
- Sale of Mining Technology and Consulting business (MineRP) concluded
- Significant right-sizing of the business nearing completion
- Level 2 BBBEE rating
Summarised consolidated income statement
for the year ended 30 June 2013
Audited Restated
30 June 2013 30 June 2012
Notes R'000 R'000
Continuing operations
Revenue 1 848 388 2 219 239
Other operating income 493 8 621
Income 1 848 881 2 227 860
Loss before interest, tax, depreciation and amortisation
charges (EBITDA) (290 356) (26 319)
EBITDA before reclassification of currency translation (249 519) (26 319)
Reclassification of currency translation differences on foreign
operations from other comprehensive income 5 (38 341)
Reclassification of currency translation on net investments
from other comprehensive income 5 (2 496)
Depreciation and amortisation charges (45 240) (45 777)
Operating loss 3 (335 596) (72 096)
Financial income 2 878 6 353
Financial expenses (38 560) (29 314)
Net financial expense (35 682) (22 961)
Loss before tax (371 278) (95 057)
Income tax 78 044 25 444
Loss for the year from continuing operations (293 234) (69 613)
Discontinued operations
Profit from discontinued operation, net of tax 6 82 471 19 023
Loss for the year (210 763) (50 590)
Total loss attributable to:
Owners of the parent (212 168) (50 785)
Non-controlling interest 1 405 195
(210 763) (50 590)
Weighted average number of shares (000's) 1 019 100 961 565
Diluted number of shares (000's) 1 019 100 961 565
Number of shares in issue (000's) 3 961 565 961 565
Loss per share
Basic loss per ordinary share (cents) (20,82) (5,28)
Basic loss per share restated for rights issue (cents) (20,82) (5,28)
Diluted loss per ordinary share (cents) (20,82) (5,28)
Diluted loss per share restated for rights issue (cents) (20,82) (5,28)
Loss per share continuing operations
Loss attributable to:
Owners of the parent (294 639) (69 808)
Non-controlling interest 1 405 195
(293 234) (69 613)
Basic loss per ordinary share (cents) (28,91) (7,26)
Basic loss per share restated for rights issue (cents) (28,91) (7,26)
Diluted loss per ordinary share (cents) (28,91) (7,26)
Diluted loss per share restated for rights issue (cents) (28,91) (7,26)
Summarised consolidated statement of comprehensive income
for the year ended 30 June 2013
Audited Audited
30 June 2013 30 June 2012
Notes R'000 R'000
Loss for the year (210 763) (50 590)
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Currency translation differences of foreign operations 5 44 176 2 844
Currency translation on the net investments of foreign operations 5 12 988 11 496
Reclassification of currency translation on investments of foreign
operations from non-distributable reserves 5 (38 836)
Reclassification of currency translation differences from
non-distributable reserves 5 38 341
Income tax on other comprehensive income 5 (2 825) (34)
53 844 14 306
Items that may not be reclassified subsequently to profit
or loss
Revaluation of property, plant and equipment 3 839
3 839
Total comprehensive loss for the year (156 919) (32 445)
Total comprehensive (loss)/income attributable to:
Loss attributable to owners of the parent (158 324) (32 640)
Profit attributable to non-controlling interest 1 405 195
(156 919) (32 445)
Summarised consolidated statement of changes in equity
for the year ended 30 June 2013
Share Share Distributable Non-distributable Non-controlling Total
capital premium reserves reserves Total interest equity
Group Notes R'000 R'000 R'000 R'000 R'000 R'000 R'000
Balance at 1 July 2011 961 641 710 (313 082) (64 047) 265 542 (3 205) 262 337
(Loss)/profit for the year (50 785) (50 785) 195 (50 590)
Other comprehensive income
Currency translation differences 2 810 2 810 2 810
Revaluation of building (Namibia) 3 839 3 839 3 839
Currency translation on net investments 11 496 11 496 11 496
Total comprehensive income for the year (50 785) 18 145 (32 640) 195 (32 445)
Transactions with owners, recorded directly in equity
Total transactions with owners
Balance at 30 June 2012 961 641 710 (363 867) (45 902) 232 902 (3 010) 229 892
(Loss)/profit for the year (212 168) (212 168) 1 405 (210 763)
Other comprehensive income
Currency translation differences 5 41 351 41 351 41 351
Reclassification of currency translation differences 5 38 341 38 341 38 341
Currency translation on net investments 5 (25 848) (25 848) (25 848)
Total comprehensive income for the year (212 168) 53 846 (158 324) 1 405 (156 919)
Transactions with owners, recorded directly in equity
Conversion to non par value share capital 641 710 (641 710)
Rights issue of shares 150 000 150 000 150 000
Share issue expenses (14 592) (14 592) (14 592)
Total transactions with owners 777 118 (641 710) 135 408 135 408
Balance at 30 June 2013 778 079 (576 035) 7 942 209 986 (1 605) 208 381
Summarised consolidated segmental analysis
for the year ended 30 June 2013
Audited Restated
30 June 2013 30 June 2012
Notes R'000 R'000
Revenue
Systems Engineering 229 362 431 593
Services 1 169 727 1 433 171
Discrete Solutions 459 196 381 557
MineRP Businesses 6 86 017 310 829
1 944 302 2 557 150
Elimination of discontinued operations 6 (86 017) (310 829)
Internal revenue adjustment (9 897) (27 082)
Consolidated revenue 1 848 388 2 219 239
Segment results
Systems Engineering (254 163) (45 214)
Services (31 407) 37 240
Discrete Solutions 38 448 34 974
MineRP Businesses 83 082 5 644
MineRP Businesses segment results (21 729) 5 644
Reclassification of currency translation on net investments
as part of disposal of business from non-distributable
reserves 41 332
Profit on disposal of business 63 479
Consolidated segment results (164 040) 32 644
Discontinued operations 6 (88 260) (23 003)
Elimination of discontinued operations 16 551 (23 003)
Elimination of reclassification of currency translation on net
investments as part of disposal of business from non-
distributable reserves (41 332)
Elimination of profit on disposal of business (63 479)
(252 300) 9 641
Unallocated expenses (118 978) (104 698)
Other corporate expenses (22 363) (29 087)
Retrenchment costs (16 393) (43 678)
Reclassification of currency translation differences from
non-distributable reserves 5 (38 341)
Reclassification of currency translation of net investments from
non-distributable reserves 5 (2 496)
Exchange rate losses on translation (3 703) (8 972)
Net financial expense (35 682) (22 961)
Consolidated loss before tax of continuing operations (371 278) (95 057)
Summarised consolidated statement of financial position
as at 30 June 2013
Audited Audited
30 June 2013 30 June 2012
R'000 R'000
ASSETS
Non-current assets 440 478 408 276
Property, plant and equipment 66 590 89 828
Intangible assets 123 877 141 799
Trade and other receivables 14 458 18 213
Deferred tax assets 235 553 158 436
Current assets 601 691 696 535
Inventories 26 741 34 459
Trade and other receivables 371 965 539 887
Current tax assets 919
Cash and cash equivalents 202 985 121 270
Total assets 1 042 169 1 104 811
EQUITY AND LIABILITIES
Equity attributable to owners of the parent 209 986 232 902
Non-controlling interest (1 605) (3 010)
Non-current liabilities 285 341 371 887
Interest-bearing liabilities 202 765 301 980
Operating lease liability 20 282 19 336
Deferred tax liabilities 62 294 50 571
Current liabilities 548 447 503 032
Trade and other payables 452 649 464 359
Short-term portion of interest-bearing liabilities 50 000
Operating lease liability 4 451
Provisions 41 155 28 020
Bank overdrafts 4 404 4 235
Amounts due to vendors 1 967
Current tax liabilities 239
Total equity and liabilities 1 042 169 1 104 811
Summarised consolidated statement of cash flows
for the year ended 30 June 2013
Audited Audited
30 June 2013 30 June 2012
R'000 R'000
Cash flows from operating activities
Cash generated (used in)/from operations before
working capital changes (170 904) 35 591
Working capital changes 94 982 48 014
Net financial expense (31 312) (13 690)
Interest received 2 889 7 214
Interest paid (34 201) (20 904)
Tax (paid)/refund (4 317) 3 829
Net cash (used in)/generated from operating activities (111 551) 73 744
Cash flows from investing activities
Purchase of intangible assets (2 803) (7 577)
Purchase of property, plant and equipment (net) (11 411) (33 172)
Decrease in amounts due to vendors (1 915) (1 686)
Short-term loan to sub-contractor (28 538)
Proceeds from the disposal of business 175 000
Cash and cash disposed through sale of business (22 678)
Net cash generated from/(used in) investing activities 107 655 (42 435)
Cash flows from financing activities
Proceeds from rights issue 150 000
Repayment of short-term borrowings (49 966) (150 749)
Share issue expenses (14 592)
Proceeds from bridge funding 50 000
Repayment of bridging loan (50 000)
Increase in short-term loans 150 000
Net cash generated/(used in) from financing activities 85 442 (749)
Net increase in cash and cash equivalents 81 546 30 560
Cash and cash equivalents at the beginning of the year 117 035 86 475
Cash and cash equivalents at the end of the year 198 581 117 035
Notes to the summarised consolidated financial statements
1 Statement of compliance
These summarised Gijima Group Limited ('the Group') financial results for the year ended 30 June 2013
constitute a summary, prepared in accordance with the JSE Listings Requirements; the South African
Companies Act (Act 71 of 2008) as amended; and the recognition and measurement requirements of
International Financial Reporting Standards and the presentation and disclosure requirements of International
Accounting Standard 34 and the SAICA Financial Reporting Guides as issued by the Accounting Practices
Committee and Financial Reporting Pronouncements as issued by the Financial Reporting Standards Council,
of the Group's audited financial statements.
These summarised consolidated financial statements do not include all of the information required for full annual
financial statements, and should be read in conjunction with the consolidated financial statements of the Group
as at and for the year ended 30 June 2013.
This provisional summarised report is extracted from audited information, but is not itself audited. The audited
consolidated annual financial statements and unmodified report, as issued by KPMG Inc., are available for
inspection at the company's registered office.
The directors take full responsibility for the preparation of this provisional summarised report and confirm that the
financial information has been correctly extracted from the underlying annual consolidated financial statements.
The Group's June 2013 results are available to the user on the company's website: www.gijima.com
The summarised consolidated financial statements have been prepared by Pierre Joubert CA(SA), the Group
Manager, Financial Accounting.
These summarised consolidated annual financial statements were approved by the Board of Directors on
27 September 2013.
2 Significant accounting policies
The accounting policies applied by the Group in these condensed consolidated financial statements are the
same as those applied by the Group in its consolidated financial statements as at and for the year ended
30 June 2013.
Audited Restated
30 June 2013 30 June 2012
Notes R'000 R'000
3 Operating loss
The following material items have been included in
the calculation of operating loss
Continuing operations
Exchange rate losses on translation of foreign currency (3 703) (8 972)
Exchange rate losses on reclassification of currency translation
on net investments from non-distributable reserves 5 (2 496)
Reclassification of currency translation differences of
foreign operations from non-distributable reserves 5 (38 341)
Loss on sale of property, plant and equipment (347) (98)
Provision for impairment of current assets (78 493) (142)
Discontinued operations
Exchange rate losses on translation of foreign currency (1 063) (2 605)
Exchange rate gains on reclassification of currency translation
on net investments from non-distributable reserves 5 41 332
Profit on disposal of business 6 63 479
Loss on sale of property, plant and equipment (11) (70)
(19 643) (11 887)
Audited Restated
30 June 2013 30 June 2012
Notes R'000 R'000
4 Headline loss
Loss per share consolidated operations
Headline loss per ordinary share (cents) (25,82) (5,28)
Headline loss per share restated for
rights issue (cents) (25,82) (5,28)
Diluted headline loss per ordinary share (cents) (25,82) (5,28)
Diluted headline loss per share restated for
rights issue (cents) (25,82) (5,28)
Calculation of headline earnings/(loss)
Loss attributable to owners of the parent (212 168) (50 785)
Reclassification of currency translation differences on foreign
operations from non-distributable reserves 5 38 341
Reclassification of currency translation on
net investments from non-distributable reserves 5 (38 836)
Tax effect of reclassification on net investments 5 12 811
Profit on disposal of business 5 (63 479)
Loss on sale of property, plant and equipment 358 168
Tax effect (100) (47)
Headline loss (263 073) (50 664)
Loss per share continuing operations
Headline loss per ordinary share (cents) (24,88) (7,26)
Headline loss per share restated for
rights issue (cents) (24,88) (7,26)
Diluted headline loss per ordinary share (cents) (24,88) (7,26)
Diluted headline loss per share restated for
rights issue (cents) (24,88) (7,26)
Calculation of headline loss
Loss attributable to owners of the parent (294 639) (69 808)
Reclassification of currency translation differences
from non-distributable reserves 5 38 341
Reclassification of currency translation on
net investments from non-distributable reserves 5 2 496
Loss on sale of property, plant and equipment 347 98
Tax effect (97) (27)
Headline loss (253 552) (69 737)
5 Unbundling of International operations and the MineRP Transaction
5.1 Reclassification of currency translation on net investments:
From 1 July 2009, foreign exchange gains and losses on foreign inter-group loan accounts were recorded in the
company's statement of comprehensive income, in line with International Accounting Standard 21: The Effects
of Changes in Foreign Exchange Rates. These gains and losses were referred to as 'currency translation on net
investments'. As a result of the MineRP disposal (refer note 6) on 9 November 2012, the conditions changed and the
inter-group loan accounts became realisable.
Cumulative currency translation position on
net investments (IAS 21.15): Notes R'000
Recognised in other comprehensive income until June 2012 25 848
Recognised in other comprehensive income to 9 November 2012 12 988
Cumulative reclassification of currency translation on investments of foreign
operations to the income statement (38 836)
Continuing operations 2 496
Discontinued operations 6 (41 332)
Balance at 30 June 2013
5.2 Foreign currency translation reserve position from consolidation (FCTR):
The assets and liabilities of foreign operations are translated to South African
Rand at foreign exchange rates at the reporting date. The revenues and
expenses of foreign operations are translated to South African Rand at
rates approximating the foreign exchange rates at the dates of the transactions.
Foreign exchange differences arising on the translation are recognised directly
in other comprehensive income as 'currency translation differences'.
Following the MineRP disposal (refer note 6) an opportunity to unwind
the remaining international entities was actioned.
As a result of the process to unwind the foreign operations other than the
MineRP businesses in June 2013, the cumulative foreign exchange differences
arising on the translation were reclassified from the statement of comprehensive
income to the income statement as the translation differences no longer have
substance in anticipation of the deregistration process.
Recognised in other comprehensive income until June 2012 (79 692)
Recognised in other comprehensive income for the year ended 30 June 2013 41 351
Currency translation differences of foreign operations 44 176
Income tax impact (2 825)
Reclassification of foreign currencies' translated differences to the income statement 38 341
Balance at 30 June 2013
6 Disposal of subsidiaries
In November 2012 Gijima disposed of its mining technology and consulting business (MineRP). MineRP was not
classified as held for sale or as a discontinued operation at 30 June 2012, and the comparative summarised
consolidated income statement has consequently been restated to disclose the discontinued operation
separately from the continuing operations. The Board committed to a plan to sell MineRP early in the 2013
financial year and the transaction was subject to suspensive conditions. All suspensive conditions were met on
9 November 2012.
30 June 2013 30 June 2012
Notes R'000 R'000
Effect of discontinued operation on the summarised
consolidated income statement:
Revenue 86 017 310 829
Expenses (102 568) (287 826)
Results from operating activities (16 551) 23 003
Net financial income 107 771
Results from operating activities, after financial
expenses (16 444) 23 774
Taxation 6 915 (4 751)
Results from operating activities, net of tax (9 529) 19 023
Gain on sale of business 3,4 63 479
Reclassification of currency translation on net investments
from non-distributable reserves 5 41 332
Taxation on reclassification of currency translation on
net investments 4 (12 811)
Profit for the year 82 471 19 023
Basic earnings per ordinary share (cents) 8,09 1,98
Basic earnings per share restated for rights
issue (cents) 8,09 1,98
Diluted earnings per ordinary share (cents) 8,09 1,98
Diluted earnings per share restated for rights
issue (cents) 8,09 1,98
Headline (loss)/earnings per ordinary share (cents) (0,94) 1,98
Headline (loss)/earnings per share restated
for rights issue (cents) (0,94) 1,98
Diluted headline (loss)/earnings per ordinary
share (cents) (0,94) 1,98
Diluted headline (loss)/earnings per share restated for
rights issue (cents) (0,94) 1,98
Cash flows from discontinued operations:
Net cash generated from operating activities 15 559 8 315
Net cash generated from/(used in) investing activities 151 134 (5 803)
Effect on cash flows 166 693 2 512
30 June 2013 30 June 2012
Notes R'000 R'000
Effect of discontinued operation on the summarised
consolidated statement of financial position:
Property, plant and equipment (7 121)
Intangible assets (1 387)
Deferred tax assets (5 169)
Inventories (757)
Trade and other receivables (48 257)
Current tax assets (7 071)
Cash and cash equivalents (22 679)
Deferred tax liabilities 70
Trade and other payables 31 618
Currency translation differences (50 768)
Net assets and liabilities (111 521)
Proceeds from disposal of business 175 000
Cash and cash equivalents from disposal of business (22 679)
Net cash inflow 152 321
Consideration received 175 000
Net assets and liabilities (111 521)
Profit on disposal of business 63 479
Reclassification of net investment on disposal of business
from non-distributable reserves 5 41 332
Profit before tax on disposal of business 104 811
Tax on reclassification of net investment on disposal
of business (12 811)
Profit on disposal of business 92 000
7 Contingent liabilities
At 30 June 2013 the Group had contingent liabilities in respect of registered performance bonds, bank lease and
other guarantees to the value of R12,1 million (June 2012: R28,8 million).
8 Segment analysis
From 1 July 2012 Gijima formally changed to a new reporting structure comprising mainly Systems Engineering,
Services and Discrete Solutions. This represents a change from the Professional and Managed Services groupings
previously reported. As a result the segmental analysis has been restated.
Review of performance
Gijima is one of South Africa's leading Information, Communication and Technology (ICT) Services groups and our Level 2
empowerment rating, with a score of 87%, makes us one of the top 20 most empowered JSE-listed companies. Gijima
offers application services, infrastructure configuration and implementation, and end-to-end managed outsource services
through its national footprint.
In terms of normal operations, the loss incurred in the second half of FY 2013 of R10 million, was significantly reduced
compared to the first half. This shows that significant traction in terms of the turnaround strategy has been achieved.
However, revenue from continuing operations was down compared to the previous financial year and the result of two
significant contracts that expired after several years of delivery in the previous financial year, a tough market and significant
top-line pressure on a major project, contributed to a challenging financial year.
Summary of EBITDA
Year ended 30 June 2013
31 Dec 30 June 30 June
Total 2012 2013 2012
(12 months) (6 months) (6 months) (12 months)
Continuing operations (290 356) (100 260) (190 096) (26 319)
Normal operations (56 904) (47 114) (9 790) (6 029)
Loss-making project (159 934) (48 463) (111 471) 23 388
Transfers from other comprehensive income (40 838) (2 497) (38 341)
Impairments (16 287) 2 072 (18 359)
Retrenchment costs (16 393) (4 258) (12 135) (43 678)
Discontinued operations 89 530 89 530 25 802
Consolidated EBITDA (200 826) (10 730) (190 096) (517)
Sale of MineRP and unwinding of our international structure
The MineRP business, in addition to being identified by the board as non-core a few years ago, would require considerable
investment to maintain its competitive position. The disposal was effective 1 November 2012 and the results are included
up to 31 October 2012.
This disposal presented Gijima with an opportunity to pursue the unwinding of the complex international structure which
it inherited from the old AST. This has resulted in the Group's income statement no longer having to bear the impact of
foreign currency fluctuations.
Foreign exchange rate differences on the consolidation of our various foreign entities resulted in charges to the Foreign
Currency Translation Reserve (FCTR) over the years. The cumulative foreign exchange differences arising on the translation
were reclassified from the statement of comprehensive income to the income statement as the translation differences
no longer have substance in anticipation of the deregistration process. The reclassification totalled R38 million, but with no
impact on our cash resources or debt to equity ratio. The total cost impact was R56 million as follows:
R million
Reclassification from other comprehensive income 38
Taxation (included in tax line item) 16
Settlement of inter-company debtors and creditors (included in operating loss) 3
Total impact of unwinding 56
Right-sizing of the business
Refinements to the structure of the business model were implemented to improve efficiencies and included a reduction
in and a consolidation of service offerings to ensure sharp focus around core competencies. This is supported by leaner
management and overhead cost structures. Gijima has achieved its forecast savings without voluntary staff turnover
exceeding industry norms and without compromising its client-centric focus and quality service delivery. In line with the
strategy Gijima will continue to build on its excellent service delivery track record and will continue to actively pursue further
efficiencies.
Rights offer raises R150 million
Gijima successfully concluded a fully underwritten R150 million rights offer, on 21 June 2013, with our long-standing
major stakeholders/shareholders GUMA (R75 million), Allan Gray (R35 million), Investec (R15 million) and FutureGrowth
(R6 million) to meet future trading requirements. It was subscribed to by 83% of the shareholders and raised R135 million
after expenses.
The new equity capital was raised by way of a renounceable rights offer of 3 000 000 000 new Gijima ordinary shares.
Shares in issue after the rights issue were 3 961 365 309. Current shares in issue subsequent to the consolidation of the
company's shares on a 1 for 20 basis on 15 July 2013, are 198 068 265.
Other items
Gijima's net financial expense ended the 12 months significantly higher than last year. This is mainly attributed to the inclusion
of a time value of money charge in relation to a long-term retention receivable, breakage fees paid on the early redemption
of long-term debenture funding, as well as a drop in interest income due to lower average cash balances during the course
of the year.
The tax charge has been distorted by the impact of the disposal of MineRP and the unwinding of the international structure.
The net cash balance increased from the previous financial year as a result of the disposal of MineRP and the rights offer.
Overview of specific businesses within Gijima
- The Systems Engineering division (previously Professional Services) houses the company's various project
environments, including custom and packaged solutions, as well as infrastructure projects.
The division showed a return to profitability from December 2012 onwards. Although it experienced a disappointing
12 months and performed well below budget, revenue was significantly impacted by the major loss-making project
referred to above.
- The Services division (previously Managed Services) is responsible for the various support environments, including field
operations for end-user computing, business applications, infrastructure support and the integrated services centre.
Revenue for the Services division was lower than last year, predominantly as a result of the loss of two significant
contracts during the second half of the previous financial year. Margins in this environment remained under pressure,
but are expected to improve following conclusion of the alignment of the cost base with the revenue level generated.
- All other focused businesses are grouped under the Discrete Solutions division, including the training and placement
business, voice business, the Namibian operation as well as MineRP up to the date of its disposal.
The Discrete Solutions division (continuing operations) disclosed an excellent performance and achieved revenue
up 20% from last year. Increased product sales contributed to the growth in revenue. The training and placement
business reported a solid performance, whilst our voice business performed exceptionally well. The Namibian operation
disclosed excellent growth and profitability.
The 65:35 split of business between Private Sector and Public Sector remains a key characteristic of Gijima and we are
proud of our ability to attract and retain significant clients and contracts from both sectors of the economy even during these
tough economic times.
Dividends
No dividend has been declared for the period.
Technology awards and achievements
Gijima is a proudly South African ICT company that has deep technology skills which it applies to the benefit of its customers.
It will continue to invest in the key competencies driving offerings to the market. The significant customer retention achieved
is testament to the commitment and dedication of our greatest asset our people.
Gijima received a number of prestigious awards and achieved many milestones during the past year:
- 6 Microsoft partner of the year awards;
- A world-first successful deployment of a SAP blueprint for a Refinery;
- A world-first end-to-end Oracle spatial solution in the Public Sector;
- First South African and the first African company to be featured on an "On The Radar" positioning by the Global ICT
analyst firm, Ovum, for our Mobility Solution the Mobile-IT Platform which is the first of its kind and was built 100%
by South Africans;
- Most certified Mobile-Iron partner in Africa with deployment of over 6 500 mobile devices;
- 1.8 million mailboxes transitioned into the cloud, making Gijima one of the largest Cloud enablers in South Africa;
- Best Unified Communications and Collaboration (UCC) Partner Award for 2012-2013, by NEC (global communications
company), in recognition of our accomplishments in the Enterprise Sector;
- Gijima continues to be the sole Authorized Apple Systems Integrator in Africa;
- Improved BBBEE rating and #2 in the industry as a Level 2 player.
Leadership
The management and Board have, since June 2012, been involved in a turnaround of the company. The turnaround
strategy included the appointment of new leadership in management. This includes the appointment of Eileen Wilton
(a veteran of ICT in leadership roles) who joined Gijima as Chief Operating Officer (COO) and after just four months
was appointed as Interim CEO in October 2012, and Liesl Tweedie CA (SA) who joined as Interim Chief Financial Officer
(CFO) in July 2013. The board would like to thank both Eileen and Liesl who have been doing a sterling job since they
assumed their roles.
Outlook
Gijima is confident that 2014 will prove that the company took the correct strategic decisions and is back on track. It is well
advanced in implementing its turnaround strategies and will further capitalise on cost savings achieved this year.
Gijima has renewed all its major long term annuity contracts with key clients whose contracts became renewable during the
period under review. Public sector continues to be a challenge as we await final adjudication by SITA on several tenders
submitted. Gijima continues to deliver products and services to the Department of Home Affairs' Who Am I Online (WAIO) project.
Gijima's new leadership, as well as the recent appointment of reputable business leaders at Board level will continue to drive
this turnaround and is testimony to Gijima's commitment to structure the business for growth and profitability.
RW Gumede EA Wilton L Tweedie
Non-executive Chairman Interim Chief Executive Officer Interim Chief Financial Officer
30 September 2013
Directors:
Mr RW Gumede (Non-executive Chairman)*
Mr PJ Bogoshi (Chief Executive Officer) 1
Mr CJH Ferreira (Chief Financial Officer) 2
Mr JE Miller* 3
Ms N Fakude* 4
Mr AFB Mthembu* 5
Ms EA Wilton (Interim Chief Executive Officer) 6
Ms L Tweedie (Interim Chief Financial Officer) 7
Mr M Macdonald*
Mr JCL van der Walt*
Mr AH Trikamjee*
Dr MHR Bussin*
Ms SV Zilwa* 8
Mr RT Edmond* 9
* Non-executive
1 Resigned 26 September, effective 31 December 2012
2 Resigned 8 July 2013
3 Resigned 26 November 2012
4 Resigned 2 April 2013
5 Resigned 17 May 2013
6 Appointed 9 October 2012
7 Appointed 9 July 2013
8 Appointed 1 July 2013
9 Appointed 1 July 2013
Company Secretary:
Ithemba Governance and Statutory Solutions
Proprietary Limited
Monument Office Park, Block 5
Suite 102, 79 Steenbok Avenue, Monument Park, 0181
Sponsor:
RAND MERCHANT BANK
(A division of FirstRand Bank Limited)
Registered Office:
47 Landmarks Avenue, Kosmosdal, Samrand, South Africa
(012) 675 5000
Transfer Secretaries:
Link Market Services South Africa Proprietary Limited
(Registration number 2000/007239/07)
13th Floor, Rennie House
19 Ameshoff Street, Braamfontein, 2001
(PO Box 4844, Johannesburg, 2000)
www.gijima.com
Date: 30/09/2013 10:33:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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