The State IT Agency (SITA) says its profit declined from R82 million in 2003 to R35 million in 2004. Presenting its annual results in Johannesburg today, SITA said its revenue had increased by 17% from R1.9 billion in 2003 to R2.4 billion this year.
Gross profit also increased from R392 million to R448 million this year, marking an increase of 14%.
SITA CFO Peter Els attributed the agency`s performance to its reduction in tariffs for its services by 7% during the period under review, adding that it also increased its spend on research and development as well as training.
He said SITA`s operating expense to revenue ration of about 15.5% was also within acceptable norms according to international standards.
SITA CEO Mavuso Msimang highlighted the agency`s substantial increase in total spending on research and development, from R14 million last year to R34 million this year, representing a 71% increase.
It had also focused more on skills development, including the Youth Internship Programme, which is run in collaboration with Umsobomvu Youth Fund, the Department of Public Service and Administration and the Public Sector Education and Training Authority.
"It is testimony to the intrinsic strength of SITA that in a year marked by far-reaching restructuring, the organisation still made a profit," said Msimang.
Els concluded that although the company recorded a R29 million profit, which was lower than last year, it still exceeds its expectations, which were projected to be in the region of R14 million.
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