IT solutions provider arivia.kom today announced its financial results with revenue of R1 515.8 million, a 25.4% increase over the past financial year (annualised). The group achieved EBITDA1 of R173.4 million, an increase of 36.2%.
[VIDEO]Arivia.kom CEO Zeth Malele says the overall increase in financial performance is as a result of significant organic growth and market gains, a focus on operational efficiencies, sound management and a dedication to the group`s vision of dominance in Africa. He is satisfied that the group has exceeded industry expectations and demonstrated the soundness of its business case under tough economic conditions and competition from other IT professional service providers.
"In 2002 BMI-T rated arivia.kom as the IT services provider with the third-largest market share in its 2002 South African IT market report, " says Malele. "At the moment, the transport and energy sectors account for approximately 72% of our revenues, however, this is a decrease from the 81% for the previous financial year. Therefore we feel that our efforts to diversify our revenue base through innovative offerings, a sound track record and pervasive branding are delivering results."
New contracts include Minolco, Vector Logistics, the Department of Water Affairs and Forestry, the South African Revenue Service, the SABC and Engen. New business realised during the financial year amounted to approximately R980 million.
PBIT2 of R64.6 million represents a 176.1% improvement over last year`s numbers annualised for 12 months. Cash holding has increased significantly from the R47.2 million recorded in the previous year, to R117.9 million. This is largely as a result of improved billing and collection processes, as well as cost saving initiatives. Malele explains: "We are on an ongoing drive to improve the client experience and optimise service delivery throughout our organisation."
For arivia.kom, new technologies and legislation pertaining to IT, such as the ECT Act and the Promotion of Access to Information Act, are opportunities to develop new solutions, which differentiate it and provide its clients with competitive business advantages. These include electronic signature and security solutions, as well as the unique mobile card verification device for drivers and vehicle licences, which will radically change the face of traffic law enforcement in SA.
Malele says the group is well positioned to realise its vision of being the dominant ICT solutions company in Africa. "We have opened our arivia.kom Nigeria office, and are evaluating opportunities to expand into other countries. In the past two years we have implemented systems for national governments in 11 African countries. New contracts that we have gained this past year include a drivers licence system for Namibia, traffic information systems for Malawi and Zambia, a motor vehicle registration system for Tanzania, and a national social security fund system and police identification system for Uganda. This proves that we have the capacity and the experience to succeed in Africa."
Malele believes that arivia.kom`s success in Africa can help in the realisation of the goals set by Nepad and the African Union. Nepad views technology as a vital component for achieving its long-term developmental objectives of improving peace and security, infrastructure, trading conditions, health and education. Business can make a real difference, in partnership with governments and NGOs, by using ICT as a tool to create an environment that is conducive to local, sustainable wealth creation and social development. Rapid advances in technology and the diminishing cost of acquiring the new ICT tools have created new opportunities for African countries to accelerate their economic growth and fast-track their integration into the global economy, explains Malele.
Another factor in arivia.kom`s favour is its black economic empowerment (BEE) profile, which makes it a player of note in the ICT sector, as well as a contributor to the sector`s transformation. "We believe the ICT industry`s most valuable resource is its intellectual capital. It is a people-centric industry, so we need to make optimal use of our human resources, and invest in the training and development of previously disadvantaged individuals, with a view to authentic, sustainable skills transfer and empowerment.
"Another factor in the transformation of the ICT sector is the increasing blurring of the lines that mark the difference between technologies," maintains Malele. "This, and the astonishing rate of adoption of the resultant technologies, products and services, is creating a host of opportunities for BEE companies."
Malele says there are great business prospects in Africa for companies that have relevant solutions, that are committed to overcoming the hurdles en route to success, and that approach expansion into Africa with a receptive mindset. "We have our roots in SA, but we are growing fast and stretching our branches all over the continent. We have proven that our people do not lack determination, tenacity or vision. Therefore I am confident that we will match this year`s financial performance in 2004."
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Arivia.kom provides integrated business solutions that include the entire spectrum of IT professional services, supporting public sector and large private sector corporates in the South African and African markets. The business is characterised by large, end-to-end IT outsource agreements, the deployment of turnkey business solutions and the provision of niche solutions. www.arivia.co.za
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