Unihold CEO steps down to head subsidiary

Johannesburg, 10 Sept 2001

Unihold CEO Gary Harlow has stepped down to take up the post of CEO of Unihold`s offshore company, Pecaso, as part of the group`s strategy to reposition itself as an IT investment company.

ITWeb reported in June that Unihold had decided to reposition as an investment holding company, focusing on IT investments, because it believed that operating as a small-cap player in the current IT market was delivering sub-optimum value to its stakeholders.

In line with the new strategy, Unihold merged its IT business solutions division with Siemens Business Services in June, retaining 40% of the merged entity.

Mike Rolfe, a former founder member of QData, has replaced Harlow as CEO. Rolf was also previously the MD of Computer Configuration Holdings and a director at SPL.

"Unihold faces the same problems as a number of small-cap IT companies - a lack of critical mass and limited ability to expand through acquisition," Rolfe says.

"The new structure allows us to capitalise on our strengths while maintaining a solid income stream from our existing investment businesses.

"At the same time we are providing investors with the potential for some blue sky through the formation of our new IT fund."

The group is planning to list Pecaso on the London Stock Exchange, but says the process is dependent on market conditions.

Unihold owns 60% of the human resources solutions and services provider, but expects to reduce this to about 40% on listing the subsidiary.

"It is important for the success of Pecaso that Gary takes responsibility for getting the company up and running, especially in its first year of the listing. His unique skills and abilities are ideally suited to this task."

Unihold recently reported that its operating income dropped to R26.06 million in the 12 months to 30 June 2001, compared with R48.86 million the previous year. Its weighted headline earning per share fell from 31.2c to 2.2c.