Segmental REPORT
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Sales & Advisory
Go-To-Market
Solutioning
iOCO Services
Network Solutions
Manage & Operate
Digital Industries
Knowledge Process
Outsourcing
iOCO Technology
Computer Software Reseller
Enterprise Applications
Computer Hardware Reseller
iOCO Digital
Application Development
(App Dev)
Data Analysis
Cloud & Security
International
Automation
ICT business focused on traditional and cutting-edge technology system integration with a range of solutions, products and services across the ICT value chain
FY2020 | FY2019 | ▲ | ||||
---|---|---|---|---|---|---|
Gross revenue (R’000) | 6 922 562 | 7 962 614 | (13%) | |||
Gross profit | 1 684 352 | 1 641 933 | 3% | |||
Gross profit (%) | 24.3 | 20.6 | 3.7% pts | |||
Normalised EBITDA | 819 275 | 358 803 | 128% | |||
Normalised EBITDA (%) | 11.8 | 4.5 | 7.3% pts |
COMMENTARY
- Size of business impacted by disposal of non-core assets as part of right sizing exercise.
- iOCO remains the core business of the Group contributing 59% to total revenue and 67% to normalised EBITDA.
- The decline in revenue for the year under review was largely due to businesses disposed of in the prior year as well as the impact of the national lockdown.
- The margin improvement for the year was due to a reduction in the contribution from hardware sales as well as exiting international businesses which were underperforming.
- iOCO is strategically positioned to grow organically and benefit from the rapid digitisation brought about by COVID-19.
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Public and private sector revenue split (%)
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Contribution of top clients to revenue 2020 (%)
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![](images/pg12-nextec-logo.png)
A variety of businesses focused on business process outsourcing and intelligent infrastructure at various stages of incubation for growth and scaling
Business Process Outsourcing
FY2020 | FY2019 | ▲ | ||||
---|---|---|---|---|---|---|
Gross revenue (R’000) | 3 530 410 | 5 522 287 | (36%) | |||
Gross profit | 527 266 | 661 197 | (20%) | |||
Gross profit (%) | 14.9 | 12.0 | 2.9% pts | |||
Normalised EBITDA | 88 968 | 109 713 | (19%) | |||
Normalised EBITDA (%) | 2.5 | 2.0 | 0.5% pts |
COMMENTARY
- NEXTEC contributed 30% to total revenue and 7% to Group normalised EBITDA.
- Revenue decline for the year was a result of non-core and EPC businesses being exited.
- The strong improvement in margin was due to the decision to exit underperforming business in the prior year.
- The remaining business lines are being consolidated to maximise efficiency and are now run in two main groupings, namely business process outsourcing and intelligent infrastructure solutions.
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Public and private sector revenue split (%)
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Contribution of top clients to revenue 2020 (%)
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![](images/pg12-ip-logo.png)
A group of high potential IP companies with scalable technology
Information Services
Sybrin
Syntell
FY2020 | FY2019 | ▲ | ||||
---|---|---|---|---|---|---|
Gross revenue (R’000) | 1 212 301 | 1 905 840 | (36%) | |||
Gross profit | 480 722 | 754 125 | (36%) | |||
Gross profit (%) | 39.7 | 39.6 | 0.1% pts | |||
Normalised EBITDA | 319 604 | 439 051 | (27%) | |||
Normalised EBITDA (%) | 26.4 | 23.0 | 3.4% pts |
COMMENTARY
- The IP companies contributed 11% to total revenue and 26% to Group normalised EBITDA.
- The IP assets were the most impacted by COVID-19 through their B2B2C exposure in two of the companies with revenue declining 36%.
- Excluding the impact of CCS and Dataworld, which have now been sold, revenue declined 22% largely due to the national lockdown.
- The Group remains focused on its deleveraging strategy which includes the review and disposal of the IP assets at fair value.
![](images/pg27-pic1.png)
Public and private sector revenue split (%)
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Contribution of top clients to revenue 2020 (%)
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