Datacentrix has already implemented corrective measures after its "disappointing" performance during the past financial year, says chairman Gary Morolo.
Saying he is confident of a claw-back, Morolo adds that corrective measures to reverse the situation include efforts to refocus the sales force and concentrate on driving cost competitiveness with its partners.
Morolo told ITWeb on the sidelines of an Investment Analyst Society presentation that the results are the worst in about 14 or 15 reporting periods, as revenue fell 7%, to R411 million, and operational profit was down by 37%, to R28 million.
He blames the poor performance on "operational issues", mainly with the company`s enterprise resource planning (ERP) business unit, but assures shareholders that the situation is well within management`s ability to handle.
"This is simply a poor performance, and there is no camouflaging this fact. The business is healthy and nothing has changed with the market. The financial performance resulted from certain executive decisions that were taken and how these were executed."
[VIDEO]Morolo notes that the company lost its focus on traditional run-rate business in infrastructure.
"We tripped over ourselves. The biggest contributor to the disappointing results was the loss of focus. We were simply not paying enough attention to our core business."
However, Morolo believes the company still has strong prospects, and has taken steps to build skills within the ERP division to enhance contracts and project management within this business.
Executive director Klaas Lammers highlights several growth areas for Datacentrix, which include multi-year government contracts, stemming from the State`s increased investment in infrastructure.
"We have a huge sales force on this, and we are sure we can supply the right solutions at the right pricing for government to make this a big area of growth for us," he says.
The market will also be driven by consolidation within the reseller space, Lammers says, adding that there are not many listed IT-related companies left in SA, and smaller companies are being absorbed by bigger groups.
Lammers reveals that the company is also positive about compliance-drive growth, as organisations are upping spend in spaces such as archiving where Datacentrix is positioned.
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