Segmental REPORT
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.
Public and private sector revenue split (%)
Contribution of top clients to revenue 2020 (%)
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.
Public and private sector revenue split (%)
Contribution of top clients to revenue 2020 (%)
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.
Public and private sector revenue split (%)
Contribution of top clients to revenue 2020 (%)
