JSE-listed outsourcing company Gijima reported improved results for the first half of the year, but says the numbers should have been higher.
The company this morning presented its interims for the six months to December. It reported revenue up 7.5%, to R1.3 billion, and reversed its previous loss-making position, posting a net profit of R28.6 million, compared with the previous R208.7 million loss, which it incurred as a result of the settlement with the Department of Home Affairs over the Who am I Online contract.
However, CEO Jonas Bogoshi says he is not happy with the company's performance and it fell short of expectations. He explains that the company is running about four months behind in implementing its new client-centric business model.
Bogoshi explains that implementing the new model is “not a cosmetic change” and involves deep restructuring of the company's operations. He explains that this led to Gijima being inwardly focused during the first half of the year.
Gijima won several new and renewed contracts during the period, totalling R400 million, says Bogoshi. He says there are opportunities it is bidding for worth a further R3 million, but that the company's pipeline needs to be strengthened.
Bogoshi says the company is also automating some services that have become commoditised and this will aid it in trimming costs.
Ferreira says the change in company model may result in retrenchments as duplications are eliminated, although it is too soon to say how many positions may be affected.
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