JSE-listed Digicore says the financial year ahead will be substantially better than last year after landing a R150 million deal to supply global positioning systems (GPS) to Debis.
Fleet management company Digicore has ordered 25 000 GPS units from Applied Test Systems, the local licence holder for Nasdaq-listed US company, Timble Navigation.
Digicore`s C-Track vehicle monitoring division will be using 19 000 of the units to supply Debis fleet management with tracking facilities. The deal is worth R150 million, nearly twice Digicore`s turnover for last year.
Debis fleet management is owned by Daimler-Chrysler and Kagiso Trust, and won the R5 billion Telkom fleet outsourcing contract earlier this year.
Digicore MD Nick Vlok says the company is looking forward to a close working relationship with Debis.
"The Debis/Telkom deal will add significantly to our revenue for the coming year. We are expecting to increase our revenue to R300 million this year."
Vlok says the company`s year-end financial results will be reflective of the company`s interims, which saw attributable earnings fall by 45%. At the time, Digicore attributed the figures to Y2K adjustment and delays in foreign operations.
"This deal is the silver lining of the dark cloud that was last year," he notes.
The short messaging system centre in Pakistan is up and running and roll out in Australia and Europe is well underway, a situation which Vlok says gives the coming year a rosy outlook after the effects of operational delays took their toll on 1999`s year-end results.
Digicore closes books today and Vlok says it is now full steam ahead for the next year. Digicore`s share price has been trading higher in the last few days at 30c, compared to the March figures of around 25c.
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