Black-owned ICT business solutions provider Simeka Business Solutions Group (BSG), which on Thursday renewed its cautionary announcement, has forecast a positive increase in revenue for the next financial year.
Addressing analysts and media at an Alternative Exchange and Investment Analysts Society investor session, CEO Mohammed Varachia said he felt confident about the future of the group.
He intends growing the company and capitalising on its almost 60% black economic empowerment (BEE) status. He says the company has not taken sufficient advantage of government spending, and intends to do so in the future.
In addition to strengthening its BEE profile, it has identified six sectors for growth. Of these, it is already active in the energy, financial services and telecoms sectors. It is also present in 22 countries on the continent and plans further growth in these sectors.
Sectors identified as future focus areas include emerging markets, the public sector, as well as government spend. Potential growth areas include providing expertise in information security, document and imaging solutions, storage, e-procurement, as well as smart card payment solutions.
Varachia has previously indicated he aims to grow the company organically and through acquisitions.
He forecast an increase in revenue of 59.2%, up to R519.4 million, from R326 million in the most recent financial year. On Tuesday, the company reported its year-end results and said revenue was up 247% on the previous year.
Varachia also forecast pre-tax profit up by 90%, to R67.6 million. Profit for the next financial period is expected to be 81.5% higher, at R45 million. Adjusted headline earnings are also expected to be higher, with a 66% increase forecast, from R27.3 million to R45.4 million.
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