Local fleet management and IT company DigiCore is cashing in on the worldwide trend to keep costs in check and has secured a R6.4 million deal with Hulsink, a Dutch construction company, to supply its C-Track products.
The deal is the largest yet for DigiCore`s European subsidiary and DigiCore says the R6.4 million order may increase after completion of the first phase, and may then be worth around R15 million.
DigiCore is cashing in on the global trend of cost-cutting and the company says the need to keep cash outflow in check often results in the deployment of new technology.
"Transport companies and fleet owners are increasingly taking advantage of the solutions offered by fleet management companies in improving profitability and efficiency by focusing on their core business," says Nick Vlok, executive deputy chairman of DigiCore Holdings.
Hulsink`s order for 550 C-Track units forms part of DigiCore`s 7 500-unit sales forecast for the next financial year.
"With the depreciation of the local currency, our exports are becoming an increasing component of revenue, with offshore earnings now accounting for 50% of turnover excluding tenders," says Vlok.
In late September, DigiCore released its third set of financial results, showing a 217% increase in turnover for the year to June. This was achieved despite the challenges faced by the transport industry; most notably the continuous fuel hikes.
News of the European deal saw the company`s share price rise marginally, gaining 1c or 3.3% to trade at 30c by mid-morning.
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