R/€ = 15.15Change: -0.13
R/$ = 14.28Change: -0.14
Au 1072.00 $/ozChange: -0.05
Pt 852.50 $/ozChange: 7.00
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?

And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters About Us
RSS Feed
Article   Comments   Other News   Research   Magazine  
Apr 21, 2009

Datacentrix wins print outsourcing deployment contract for World Cup

Datacentrix CEO Ahmed Mahomed and chairperson Gary Morolo discuss the company's latest business outsourcing project and its plans to increase its BEE status (Videographer: Danie de Beer; Editing: Darlene Creamer)
© Reuse this

Information technology (IT) services and solutions provider Datacentrix has won a print outsourcing deployment contract for the 2010 FIFA World Cup.

“In the print services space, we have seen a lot of activity and won a lot of deals, which we are executing in the next couple of months and we see an appetite for that solution in the marketplace.

“There is great demand for this niche solution and if we do it well, we will see a lot of growth in that area,” said Datacentrix CEO Ahmed Mahomed at the company’s interim results presentation in Johannesburg on Tuesday.

Although Mahomed declined to elaborate the matter, he did divulge that the contract included the management of the entire printing infrastructure at all the 2010 FIFA World Cup stadiums.

The JSE-listed company’s chairperson, Gary Morolo, said that even though the company is over 50% black managed, there was room for improvement at senior executive level.

He added that there are no obvious vacancies, and the company was seeking to bring in new skills at management level without dislocating what was a smooth functioning team.

On staff retention, he noted that the cooling of the market had resulted in conservatism by staff on changing jobs, however, the issue did not go away.

“We would hate to be caught with our pants down once the environment changes, and we would like to know that we have done our best to take measures to retain our staff,” he commented, saying that the company has recently invested highly in upskilling and hiring experienced staff.

Within the context of the generally challenging economic climate, the company’s revenues increased by 12% to R1,5-billion, compared with R1,35-billion the year before.

Its earnings before interest, taxation, depreciation and amortisation (Ebitda) grew by 5% to R165,5-million, compared with R157,1-million the year before.

Further, the company’s diluted headline earnings a share had increased by 19,6% to 61c a share, compared with 51c a share the year before.

In addition, Ebida margins were at a healthy 10% in an increasingly competitive environment.

"Our 2009 financial year-end results, though short of our own expectations, are positive and commendable in a year that has undoubtedly been tough for most companies, including those within the IT sector," said Morolo.

"We continue to have strong cash generation and a healthy balance sheet in an environment that began to turn negative with the explosion of the subprime bubble in 2007."

The business solutions division experienced a difficult year not only because of current market conditions, but also as a result of some vendors changing their route to market in the archiving and enterprise content management space. This has necessitated a repositioning of this business.

Mahomed added that vendor activity was still an issue it had to keep an eye on. “One of the key issues is how the vendors go to market,” he added.

On the contrary, however, the business process management business had a robust performance in the year under review.

In the context of the current economic slowdown, the company maintained that organisations would focus on efficiencies and driving down costs, including IT outlay, to preserve bottom lines.

He noted that the future growth for the group would be principally organic, supplemented by selective acquisition of pockets of excellence in identified synergistic growth areas.

"The current climate has the potential to stimulate consolidation in the market, offering opportunities to access new clients in the commercial space," Mahomed added.

Edited by: Chanel de Bruyn
Creamer Media Senior Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
Other ICT News
Nigeria's communications ministry said on Wednesday that it is up to President Muhammadu Buhari to decide "in which direction to go" with a $5.2-billion fine on mobile phone company MTN after it asked for leniency. "The (Communications) minister (Adebayo Shittu) said...
Trade and Industry Minister Dr Rob Davies expects the growth potential of the local business process outsourcing (BPO) industry to continue increasing over the next five years, particularly in contact centre, shared services centre and legal process outsourcing. He...
Telecommunications giant Vodacom and converged network operator Neotel have two weeks to decide whether the proposed merger between the two companies would continue in an “amended” form or be abandoned altogether. Following an eleventh-hour postponement of the...
Article contains comments
Latest News
Updated 6 hours ago Business confidence has dropped by a full 15 points over the past year to reach its lowest level in five years, the latest Rand Merchant Bank (RMB)/Bureau for Economic Research (BER) Business Confidence Index (BCI) has shown. After falling from 43 to 38 in the third...
Updated 6 hours ago JSE-listed beverage, food and nonperishable packaging manufacturer Nampak’s basic earnings a share rose 3% to 228.3c for the year ended September 30, from 221.7c the year before. The company also reported an increase in group revenue and trading profit of 13%, to...
Updated 6 hours ago As Parliament mulls the new regulatory framework to govern South Africa’s financial industry, the sector is preparing for its promulgation; however, it will require a complete “rethink” of the way regulators guide financial institutions. The tabling of the Financial...
Recent Research Reports
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
This Week's Magazine
Additive manufacturing, better known as 3D printing, has the potential to completely change the relationships between individual consumers, professional designers and manufacturers. So argued Loughborough University Reader in Computer Aided Product Design Dr Ian...
Airbus Defence and Space: Military Aircraft has highlighted that its A330 Multirole Tanker Transport (MRTT) has significant commonalities with the Airbus A330-200 commercial airliner, upon which it is based. The South African Air Force (SAAF) once operated a fleet of...
Financial services provider Nedbank launched the second edition of its Carbon Footprinting Guide earlier this month, which is aimed at demystifying carbon footprint approaches and help readers grasp the main concepts of carbon measuring, monitoring, reporting and...
This year marks the thirtieth anniversary of Caterpillar’s first backhoe loader. This also coincides with the worldwide release of its latest-generation F2 series backhoe loader, which was launched at supply chain services company Barloworld Logistics’ Big Dig Day in...
BARRY DWOLATZKY The CPD programme provides advanced skills required locally, and provides a stepping stone to Wits University’s Master of Engineering degree in software engineering
A shortage of software engineers is leading to fewer information technology (IT) projects in private and public sector organisations. This also places a dampener on the economy, as IT is an integral part of business and civil service, says University of Witwatersrand...
Alert Close
Embed Code Close
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96