Converged network provider KSS Technologies aims to grow gross profit by 50% in the current financial year.
The empowered company grew revenue faster than it expected in the year to December, with a 4.2% growth. Gross profit increased 14% and net profit before interest and tax improved 28%.
KSS is not listed and does not provide specific financial figures, as it is not required to do so. However, sales manager Stuart Cohen says the company aims to grow gross profit by half as much again this year.
He says KSS has identified several sectors that it expects to lead to this growth - including a more focused approach on managed services.
Cohen adds that the company is seeing more interest in its offerings after last year's economic downturn, which ravaged several companies. “Last year was a bomb in the marketplace.”
Growth sectors
Other areas the company is seeing opportunities in which to grow include green IT, although Cohen says the interest in the technology is mostly talk, with little action happening at the moment.
Chairman Ntsundeni Madzunya says KSS needs to address three major challenges. “We need to decrease our dependence on fewer customers by growing the product sales and, similarly, our annuity revenues. More importantly, we need to continue our BEE programmes.”
During 2009, KSS Technologies consolidated its shares and increased its BEE shareholding to more than 60%.
Looking forward
Madzunya says 2010 is an exciting year for SA, with the Fifa World Cup. “This event will have both a positive and negative impact on business in general.
“Although we will ultimately benefit from a stronger economy, during the event there will be very few key decision-makers behind their desks. This will result in a delay in business decision-making, but will allow us to build relationships with our customers, old and new.”
KSS specialises in the design, implementation and support of converged networking solutions. Its head office is situated in Midrand, with support centres countrywide, providing a national support infrastructure.
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