http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.49Change: -0.02
R/$ = 11.88Change: 0.20
Au 1214.08 $/ozChange: 19.92
Pt 1149.50 $/ozChange: 15.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
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 Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Apr 21, 2009

Datacentrix wins print outsourcing deployment contract for World Cup

Back
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)
 
 
 
Environment|Services|Solutions|Infrastructure
Environment|Services|Solutions|Infrastructure
environment|services|solutions|infrastructure
© 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
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Information Technology News
Updated 7 hours ago The Department of Telecommunications and Postal Services (DTPS) has set aside R200-million of its R1.4-billion budget this year to kickstart the first phase of South Africa (SA) Connect national broadband strategy. Over the next three years, the department aimed to...
FREDRIK JEJDLING Sustainability becomes an important part of a business’ decision-making process
Communications technology firm Ericsson sub-Saharan Africa head Fredrik Jejdling says the company’s commitment to sustainability and corporate responsibility has been integrated into all facets of its operations, which has provided it with sustainable revenue...
NEIL COSSER Security strategies enable companies to determine data classification and encryption priorities
There is a mismatch between companies’ expenditure on information technology security systems and the protection of valuable corporate processes. Companies mistakenly believe that buying systems provides robust protection, despite the most important element – data –...
More
 
 
Latest News
Updated 3 hours ago South Africa’s crude steel production dropped by a sizeable 17.2% year-on-year to an estimated 530 000 t in April, amplifying a global trend that saw world steel production decline by a comparatively marginal 1.7% to 135-million tons in the fourth month of the year....
Updated 3 hours ago The Treasure the Karoo Action Group (TKAG) on Friday called on government to delay publishing final regulations and issuing rights for shale gas exploration in the Karoo, until a 24-month strategic environmental assessment (SEA) has been concluded. TKAG CEO Jonathan...
More
 
 
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
 
 
 
 
 
This Week's Magazine
While economic forecasts for the African continent are most favourable, African airlines may not be able to benefit from the expected growth in the region’s gross domestic product (GDP), International Air Transport Association VP: Africa Raphael Kuuchi has warned....
The Automotive Production and Development Programme (APDP) will need to change substantially post 2020, says Metair Investments South African operations COO Ken Lello. “We must not make tweaks. We have to change. What we are doing is not sustainable.”
Banking group Absa’s forecast is for the rand to end the year at around R13 against the dollar, weakening further to R13.50 by 2016, says Absa sectoral analyst Jacques du Toit. He warns that possible interest rate hikes in the US may see capital being pulled from...
The Dispute Resolution Centre at the Bargaining Council for the Civil Engineering Industry (BCCEI) is now open to handle party-to-party disputes. The BCCEI represents the interests of all level four to nine Construction Industry Development Board companies.
FREDRIK JEJDLING Sustainability becomes an important part of a business’ decision-making process
Communications technology firm Ericsson sub-Saharan Africa head Fredrik Jejdling says the company’s commitment to sustainability and corporate responsibility has been integrated into all facets of its operations, which has provided it with sustainable revenue...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
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
 
 
Close
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