I-Fusion becomes profitable

By Iain Scott, ITWeb group consulting editor

Johannesburg, 23 Aug 2004

I-Fusion, which is being rebranded as Bidvest Network Solutions (Bidnet), has become profitable for the first time since being acquired by Bidvest.

Bidvest first bought 60% of I-Fusion in mid-2000, increasing its stake in subsequent deals to make it a wholly owned subsidiary.

In the year to end-June, Bidnet, a wide area network solutions provider, achieved what Bidvest CEO Brian Joffe refers to as a small after-tax profit.

"Further growth is being energetically pursued, which includes the rebranding of I-Fusion to Bidnet, leveraging the strength of the Bidvest connection," he says.

The turnaround in profitability was despite a 44.5% decrease in Bidnet`s revenue from R90.67 million to R50.3 million.

However, the subsidiary achieved trading income of R0.58 million, against a loss of R5.04 million for the previous year.

Bidvest`s electronic marketplace, mymarket.com, grew its revenue from R3.26 million to R7.91 million during the year, while a trading loss of R7.71 million compared with a loss of R7.24 million the previous year.

Joffe says mymarket.com was helped by new business gains and increased usage of its services by existing customers, both locally and internationally. Further growth is expected next year, he adds.