The State IT Agency (SITA) has reported a full-year profit for the first time in the four years since its foundation.
<B>Salient figures</B>
SITA results for the year to 31 March 2003.
Previous year's figures in parentheses:
Gross revenue: R1.97b (R1.36b)
Operating profit: R91.37m (-R78.64m)
Net finance income: R28.5m (R7.82m)
Profit before tax: R119.87m (-R70.82m)
Net profit: R82.84m (-R51.51m)
Current assets: R978m (R801.23m)
Cash and equivalents: R546.43m (R455.96m)
Current liabilities: R657.92m (R502.2m)
Cash generated in operations: R227.44m (R300.84m)
Turnover for the year to 31 March rose 44% from R1.36 billion to R1.97 billion and the agency turned the previous year's R51.51 million net loss around, posting a profit of R82.84 million. Acting CEO Ken Modise says SITA saved government more than R100 million during the year through economies of scale.
CFO Pieter Els says operating expenses as a percentage of revenue fell from 17.8% to 16.3%, despite the fact that the SITA staff complement rose from 2 515 to 3 043.
This is also the first set of results the auditor-general has not qualified or raised an emphasis of matter. "A lot of effort went into ensuring that all previous qualifications and emphases of matter were eliminated and that no new matters arose," says chairman Zodwa Manase.
"For financial year 2004 we are predicting even better results," she says.
Public service and administration minister Geraldine Fraser-Moleketi says government is impressed with the results. "It is important to ensure that you match profits with client satisfaction, and this will be the challenge in the year ahead," she says.
The agency's IT Acquisition Centre processed more than 300 tenders worth R2.8 billion during the year.
SITA also achieved savings of just more than R30 million on existing defence services, which it says allows for reinvestment into evolving defence requirements.
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SITA to report a profit
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