Investment holding company SecureData expects to benefit from consolidation in the UK IT security market.
SecureData's subsidiaries provide products, solutions and services focusing on information risk management. CEO Dean Brazier says its UK-based MIS Corporate Defence Solutions is well positioned to take advantage of expected consolidation in the sector.
Brazier says the UK division is performing well in pounds, but the strong rand means a conversion to the local reporting currency lobs off some of the revenue gains in the unit.
He says the UK IT security market is ripe for consolidation, and MIS is a large enough company to benefit from any deals that may come along.
Brazier says there are not any deals on the table yet, but “we're not blind to any opportunities”.
He adds that the company will not make acquisitions just for the sake of bolstering earnings, but rather wants to add to its technology offerings.
Any deal is likely to be paid for through a combination of debt and shares, and Brazier expects to end the year with the company in a cash positive position as it is paying down its debt aggressively.
The company has R28 million in the bank, and short-term loans of R17 million to pay back. Long-term loans amount to R56.8 million.
SecureData has been restructured to allow it to grow without major investment, says Brazier. The company has reviewed its portfolio and moved out of lower margin technologies, he says. SecureData now aims to bulk up its offerings by adding more profitable offerings to its range.
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