SecureData's decision to rid itself of operations that did not support its strategy will soon bear fruit.
So says group CEO Dean Brazier, adding the company is ready to get "bullish" again.
"We've been criticised over the past 18 months for being bearish. We had some very difficult decisions to take and we are now well and truly over the challenges," he comments.
Earlier this year, the company changed its name from ERP.com to "better suit its trading activities".
Yesterday, SecureData released its preliminary results for the year ended 31 July.
As a result of the disposal of non-core operations, revenue declined 10%, to R148 million. Despite profit from continuing operations increasing 32%, to R26.3 million, SecureData's net profit declined 69%, to R6 million. This was due to a R20 million loss incurred on the disposals.
Gone shopping
With the restructuring efforts concluded, SecureData embarked on two acquisitions during the period.
In November, the company completed its purchase of Value Added Distribution. As of 1 July, SecureData's acquisition of SensePost had become effective.
"Notwithstanding the fact that organic growth prospects remain exciting, the board continues to evaluate potential targeted acquisitions that are deemed to support the company strategy," says SecureData.
The company is trading under cautionary, following Friday's announcement that it had entered into negotiations.
Brazier will not be drawn on whether the negotiations place SecureData on the buyer or seller side.
Instead, he says, the company is actively on the lookout for new additions: "We have made our intentions to make further acquisitions clear to the market. We have companies in mind, and are looking forward to coming to the market when we have something definite."
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