Gijima reported a R210.7 million loss for the year to June, more than four times last year's loss, as it experienced challenges with revenue from continuing operations.
Despite revenue dropping from R2.2 billion to R1.8 billion and its loss growing from R50.6 million, the company is confident it will return to profitability next year. It says the turnaround of the company is "clear" as its second half results show its operating loss has been trimmed from R50 million to R10 million.
Gijima made an operating loss from continuing operations of R123 million in the six months to December, partially due to pressure on its top line.
"The result of two significant contracts that expired after several years of delivery in the previous financial year, a tough market, and significant top-line pressure on a major project, contributed to this position," says Eileen Wilton, interim CEO at Gijima.
Wilton replaced former long-standing CEO Jonas Bogashi, who left after Gijima went through a deep restructuring of its operations as part of its Vision 2025 plan.
The company, which has been battling after losing contracts, raised R150 million during the year to ensure it has sufficient working and investment capital for the future.
Gijima has also sold its mining and technology consulting business, MineRP. "This now provides the company with an opportunity to pursue the unwinding of the complex international structure which it inherited from the old AST," it says in a statement.
The listed company adds it has put processes in place to streamline the business and bolster performance for the next financial period.
"We implemented refinements to the structure of the business model to improve our efficiencies. This included reducing and consolidating our service offerings to ensure a focus around the core competencies of the organisation. The management and the board have been involved in a turnaround strategy of the company since June 2012," says Robert Gumede, Gijima chairman.
Gijima's focus going forward will be on retaining and growing its existing client base, as well as continued focus on right-sizing the business to improve its financial position, it says.
"We have renewed all major long-term annuity contracts with key clients whose contracts became renewable during the period under review and, all told, we are looking forward with confidence to the next 12 months," adds Wilton.
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