South African software company DVT aims to hit at least R250 million in turnover in the just-started financial year, after getting to R200 million in the year to February.
DVT, which was founded in 1999 and delisted from the JSE two years ago, grew 40% year-on-year since leaving the bourse, says CEO and founder Chris Wilkins. He adds that, to hit its target, the company only needs to grow 25% on the most recent financial year; and between 70% and 80% of that is "wrapped up already".
"We have experienced unprecedented growth for the past two years," says Wilkins. "Our focus on an ownership-based business model, coupled with hiring the right staff, has been instrumental in this success."
Wilkins says much of the company's revenue is "piece-by-piece," which makes it hard to win, but difficult to lose. He adds that demand is high, and skills scarce, which works in DVT's favour.
DVT is not set to return to the bourse anytime soon as it does not need to raise capital for expansion, says Wilkins. He adds that while the company may do a few small deals, the cost of acquiring staff organically is less than the expense involved in a buyout.
Wilkins notes that DVT, which has about 400 staff members, is not keen to be bought out, although the company has been approached in the past. "Why would I want to sell?"
Although margins have been under pressure in the industry as a whole, DVT has slowly improved the circumstances within which it operates, and has thereby negated some of the negative effects of these external market forces, says Wilkins. DVT's pre-tax profit is currently at industry-standard levels, he adds.
As part of the company's long-term drive to grow ICT skills in the country, DVT also has an internship programme through which interns are managed, mentored and exposed to the right variety of projects.
"We have made a substantial commitment to this programme because we believe that the return on investment will be significant, given the impact of ICT on the economy and the shortage of local skills in this sector," says Wilkins.
DVT is currently providing internships to more than 60 graduates and entry-level professionals, and will continue to increase this number each year.
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