SecureData, which went through a torrid time a few years ago, has trimmed its staff complement, restructured its operations and overhauled its leadership team.
As a result, it posted a modest profit in the year to July, of R2.38 million, compared with its net loss last year of R38 million. Revenue also improved, growing from R222 million to R289.7 million.
In its results commentary, the group says, between last May and when the results were approved, it went through "extensive" restructuring and a "major" overhaul of its leadership team.
Group headcount has reduced from 140 to 104, and some products and services were discontinued, while new ones were introduced, it says. "Experienced senior personnel were hired to strengthen the team."
Making gains
Although technology renewal revenue is important to its business, SecureData's focus has turned to generating new business in partnership with its channel resellers.
"This effort is starting to bear fruit and we are seeing the beginnings of some material growth. Although growth is in some instances constrained by the cash required to fund it, we focus on the highest gross margin opportunities."
During the year, SecureData recorded a break-even margin at the earnings before interest, tax, depreciation and amortisation (Ebitda) level. It ended with R14.3 million in cash after selling its European operation, which left it free to focus on SecureData Africa.
The listed company sold its European business in a bid to pump cash into its African operation and pay down debt.
SecureData operates through two subsidiaries, SecureData Africa and SensePost. SecureData Africa weighed on the group in past years and, in 2011, led to a reduction in both revenue and earnings before interest, tax, depreciation and amortisation.
Pushing north
SecureData Africa, its largest unit by revenue, trimmed its Ebitda loss to R300 000 from R45.9 million and boosted revenue to R253 million from R189.2 million. It says it achieved "significant" growth from territories north of SA, which now account for 18% of the unit's business, up from 10% a year ago.
SecureData expects to keep its present rate of growth in Africa and has started the new financial year with improved teams and structures, and a better product mix, it says.
SensePost remained profitable with an Ebitda of R8.5 million, a slight gain from R8.1 million, on revenue that grew 8.9% to R36.6 million. SecureData continues to invest in the UK operations, which - together with the US presence - accounted for about a quarter of turnover.
A modest rate of growth in SensePost is expected to continue as it takes "advantage of the market's demand for highly technical expertise and training".
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