Secure electronic payments company Prism is actively seeking a black economic empowerment (BEE) partnership for the entire group, says CEO Alvin Els.
Writing in the group`s latest annual report, Els says the partnership between subsidiary Prism Transwitch services and empowerment partner Gijima Technologies has been bedded down.
Although it has yet to make the anticipated breakthroughs into the government and parastatal sectors, the group expects this to happen in the current financial year.
"In addition, Prism is actively seeking a broader BEE partnership for the entire group," he says.
"Prism`s BEE commitment extends beyond equity. It is a fundamental objective of the Prism group BEE strategy to assist in the creation and support of black-owned companies and as a result procurement by Prism should assist in providing black enterprises with the opportunity to expand their output.
"To this effect the stated objective of Prism is to channel a significant percentage of procurable expenditure through black or black-empowered enterprises."
Commenting on the group`s prospects for the current year, Els says Prism has entered a phase of calculated growth.
"This growth will be reflected in its cost base and employee numbers in the months ahead. However, growth in these areas will be carefully considered and be in line with projected increases in revenue going forward."
He says the group has a strong sales pipeline and there are good prospects for earnings per share growth in the current year, should the average rand/dollar exchange rate remain similar to that of the 2004 financial year.
"We will maintain a vigilant watch on the relative strength of the rand. Should the rand strengthen substantially, we will have to re-evaluate some of our current positions. At levels in excess of R6.80 to $1, Prism`s potential for earnings growth is favourable."
Chairman Nigel Matthews says while the currently strong rand may continue to impact the group`s earnings in the short-term, sales volumes have been increasing, which he says is a clear indication of Prism increasing its market share both in SA and internationally.
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