JSE-listed technology company 4Sight Holdings highlights the integration of artificial intelligence (AI) and the internet of things (IOT) as a central driver of its profitability.
This emerged when the company today announced its interim financial results for the six months ended 31 August.
According to 4Sight, the sustained adoption of AI across sectors, with a powerful new trend emerging in the form of the AI of things (AIOT), continues to drive strong growth for 4Sight.
Revenue increased by 6.8% to R578.7 million, up from R542 million in the first half of the previous reporting period, says the firm.
Overall, operating profit increased 35.7% to R48.3 million, compared to R35.6 million in the first half of the previous reporting period. Gross profit increased by 15.3% from R220.4 million, to R254.1 million, and gross profit margin increased to 43.9% in August 2025 compared to 40.7% in August 2024.
“The increase is largely due to the sales mix, whereby professional services increased by 10.4% for the comparative period,” says Tertius Zitzke, group CEO of 4Sight Holdings.
“AIOT – the convergence of AI and IOT to enable intelligent systems that can sense and act autonomously – is the new kid on the AI block and a powerful tailwind for AI investment, particularly in the operationally-intensive mining, oil and gas, manufacturing and industrial sectors,” explains Zitzke.
The company notes that AIOT holds broad applications for business operations, from quality control, asset performance management and energy-efficiency, to autonomous operations and predictive maintenance.
“The net effect is improved operational efficiencies, which helps lower costs and boost output,” adds Zitzke.
“Our investment in AI readiness and the development of our 4Sight Automated Intelligence (4AI) solutions has positioned us as leaders. The business is well-placed to benefit from the accelerated adoption of this emerging category within the broader AI ecosystem, alongside our established and still growing agentic AI and co-pilot solutions.”
IP-led innovation
According to the company, the impact is evident in the substantial increase in operating profit within the business environment (BE) cluster, which grew by 264% over the first six months of FY26 compared to the same period last year.
“The BE cluster, which handles data and AI work, drives the intelligent convergence of operational technology (OT) and information technology (IT), creating a cohesive data landscape that transforms business insight from hindsight to foresight,” explains Zitzke. “This performance validates our focus on scalable, IP-led innovation.
“The exponential increase in profitability within this division reflects the strategic pivot toward high-value, AI-driven systems and solutions.”
Performance across other clusters remained strong, with profitability in the channel partner (CP) cluster increasing 13.5%, despite headwinds from a weaker US dollar, the firm says.
The shared services cluster achieved cost savings by consolidating positions and automating routine work, demonstrating the internal application of 4Sight’s 4AI automation strategy, it says.
The IT cluster remained stable, while the OT cluster experienced a temporary profit contraction of R2 million (-11.7%) due to cyclical pressures in the mining sector.
“We expect a strong sector recovery on the back of stronger mineral prices and company pivots to oil and gas, with expansion into Africa and globally for the OT cluster in FY26 H2,” confirms Zitzke.
The IT cluster is expected to see future growth from automation in financial and people management systems, with AI agents and co-pilots automating significant portions of these sectors, the company says.
“While the group’s total operating expenses for the period increased to R205.3 million (2024: R186.7 million), resulting in an increase of 10% compared to the first six months of the previous reporting period, 4Sight increased its cash balance by 11.5%” says Eric van der Merwe, group CFO of 4Sight.
This financial performance delivered an increase in basic earnings per share of 30.3% to 6.754c from 5.184c, and increased headline earnings per share by 30.2% to 6.753c from 5.185c.
“The 14.5% increase in net asset value is a strong indicator of the significant financial and operational growth and success in the valuation of our core business,” adds Van der Merwe.
“We remain well-positioned to continue on this sustainable growth path with our 4AI strategy, and a robust project pipeline that includes good contracts with international partners that will run over the next 12 to 24 months.”
AI war chest
With only R7 million used from the company’s R20 million AI innovation war chest, the company says 4Sight’s continued investment in AI solution development will also support continued growth in the second half of the financial year.
It points out that the products and solutions developed to date have already delivered a 100% return on investment from a revenue perspective.
“We anticipate further growth opportunities through strategic acquisitions, enhanced technology-led ESG initiatives, and a strengthened market delivery position leveraging the company’s B-BBEE level 1 status,” comments Zitzke.
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