New-look Glotec 'more stable`

By Iain Scott, ITWeb group consulting editor

Johannesburg, 16 Jul 2003

Global Technology says its restructuring process has resulted in a more stable group whose remaining divisions are beginning to experience deal flow again.

The group announced yesterday that it had agreed to dispose of four subsidiaries to a consortium comprising its former CEO, Ray Leonard, and Lexshell 577 Investments.

While the consortium paid only R1 for the four businesses, it will also assume certain of Glotec`s liabilities.

This deal, as well as the voluntary liquidation of Southern Africa and Global Technology EBS, which were part of the group`s banking division, leaves Glotec with three divisions.

"We made the decision to reposition Glotec to focus on business performance management, business process outsourcing and enterprise resource planning solutions," says recently appointed CEO Graeme Victor.

"Glotec will provide these services through its three remaining divisions: Global Technology Business Intelligence (GBI), Brolink and Associated Computer Solutions (ACS)."

GBI, which has 85 companies in SA using its products, provides solutions in the business intelligence and business performance management arena and is the local distributor of Hyperion, Business Objects and Armstrong Laing.

Brolink performs insurance administration of personal lines portfolios on behalf of insurance companies and provides portfolio and administrative management to insurance brokers.

Victor says Glotec will focus on expanding Brolink`s service offering to grow it into a fully-fledged business process outsourcing service.

ACS has 80 clients in the manufacturing and distribution industries. Victor says Glotec will focus on promoting ACS`s full service offering, which includes software solutions that provide companies with the agility of structure and control needed in the manufacturing, distribution and accounting business environments.

"The restructuring process has resulted in a more stable group and our customers are reconfirming their faith in Glotec," Victor says. "As a result, deals are starting to flow through again.

"We are confident that our three remaining focus areas provide Glotec with a solid foundation for future growth."

Glotec began its restructuring exercise after publishing a dismal set of results for the year to end-December 2002. The results led the group`s auditors to express doubts about Glotec`s ability to continue as a going concern unless various steps were taken.

The group has warned that it will report a significant loss for the six months to 30 June.