DigiCore Holdings has managed a turnaround in its fortunes, with the telematics specialist reporting profit after tax for the year ended June 30 of R7.8-million, compared with a loss of R59.4-million in the previous financial year.

Revenue for the year reached R892-million, up from R879-million.

Digicore is a JSE-listed vehicle tracking, fleet management solutions and insurance telematics group, and the supplier of the Ctrack product portfolio.

“This greatly improved position has been the result of stringent cost control without affecting the bigger picture and the turnaround in our international business,” says CEO Nick Vlok.

Company founder Vlok has returned to the CEO seat, occupying it for the past 18 months.

Since his return, the group’s investment in research and development has remained consistent at R50-million a year, and has resulted in a number of new products, includ-ing Ctrack On-the-Road, Ctrack Multi-comms and Ctrack’s Anti-jamming module, which has already been launched, with other innovations said to follow.

DigiCore believes new opportunities exist within the South African consumer market as the insurance and dealership industries show increasing interest in deploying more sophisticated vehicle-tracking products.

Likewise, the fleet environment is also expanding with the onset of interactive business intelligence, for example.

“Our South African business is on a new growth path, with a robust sales structure in place, significant improvement in sales activities and some substantial tenders being worked on,” notes Vlok.

Despite the consolidation and closing of nonprofitable operations, DigiCore has main- tained its global footprint through a combina-tion of distributors and equity partners.

New distributors has taken the group’s footprint to more than 50 countries. This is expected to reach 60 in 2015.
“The outlook for the group is positive and we have budgeted for growth in 2015 on the back of the opportunities in South Africa, prospects in the insurance telematics space globally and the turnaround in our international business,” says Vlok.

Ctrack specialises in vehicle tracking, fleet management and insurance telematics for a global client base. Operations span six continents, with more than 1 000 employees and more than 800 000 Ctrack systems sold.

Clients include the Royal Mail (UK), the South African Police Service, the eThekwini Metro and BHP Billiton (global).

Several new product developments have been initiated for the fleet and consumer/insurance markets in the past financial year, with some already launched and others to follow early in the new financial year.

Ctrack On-the-Road is a touch-screen terminal based on smartphone technology, and is manufactured in China.

The latest upgrade includes a forward-looking video camera used for driver behaviour and accident investigations, with remote access to the video.

Ctrack has also released its new multicommunications module, allowing cost-effective Ctrack operations in and outside areas covered by phone networks, switching automatically to satellite communication when necessary.

This module allows combinations of WiFi, satellite communications, and even high-security private digital radio networks, such as Tetra.

Ctrack also signed a global mapping agreement that gave it global direct access to up-to-date, cloud-based map databases, providing clients with maps, satellite images and real-time traffic data.

DigiCore has also launched its Fleet Protector product, which provides a range of cover for fleet owners, drivers and users of company vehicles.

The product is underwritten by Hollard and will be sold into the fleet base in the next financial year.

An agreement with International-SOS (Digicall) is providing the opportunity to sell value-added services, such as medical support and roadside assistance (Advanced Protector), to the DigiCore customer base.
Discovery Insure installations have increased to around 5 000 Ctrack insurance telematics systems a month, with a total of 77 000 installations to date, based on the con-cept of rewarding better and safer driving.

DigoCore’s Tap-i-Fare has also partnered with the South African taxi industry, as well as public transport owners in neighbouring countries, with the group engaged in a proof-of-concept phase for both telematics and fare collection technology until the end of 2014.