Johannesburg Stock Exchange listed IT firm Gijima has announced that its Chief Executive Officer Jonas Bogoshi has tendered his resignation, coinciding with the company reporting on Wednesday that they had a decline in revenue for the financial year ending June 30.
A statement published by the company said: “The Gijima Board wishes to announce the resignation of the chief executive officer of Gijima, Mr Jonas Bogoshi, effective 31 December 2012. While there will be a formal handover period of three months, the board would like to take this opportunity to thank Mr Bogoshi for his hard work over the past five years and wishes him well in his pursuit of new endeavours.”
The past financial year has not been good for Gijima, as it reported a decline in revenue to R2.53 billion (US$307 million) from R2.56 billion ($311 million) in 2011. A positive is that it managed to reduce its operating loss to R49.1 million (US$6 million), from R258.2 million ($31.4 million) the year before.
It also experienced a diluted loss per ordinary share of 5.28 cents, from a prior loss of 21.76 cents, and a diluted headline loss per ordinary share of 5.27 cents, from a loss of 21.65 cents in 2011.
According to Gijima, the financial losses were significantly impacted by the cost of establishing its client-centric business model and the loss of two significant contracts, as well as the cost of an internal optimisation programme.
Gijima reported that a significant contract was lost and a material portion of another key contract was insourced during the 12 months ended June 30.
The company has been rendering services for a hardware break-fix contract to the South African Police Services (SAPS) since 2002. Following the expiry of the latest three-year term of the SITA 433 Contract in 2009, Gijima and SITA entered into several short-term extensions.
In January, however, Gijima received notification from SITA that a new service provider would be taking over the month-to-month provision of services. A new tender for these services is expected to be issued for SAPS in the near future that will replace the current month-to-month agreement.
Gijima also lost a significant contract with Absa during the reporting period.
The company said it has completed the implementation of its new structure, and its business model has been altered to reflect an organisation where client centricity is the primary focus. The cost of establishing the client-centric model amounted to R22.3 million (US$2.7 million).
Looking ahead, Gijima said it has invested to position itself for stability, consolidation and growth.
“New generation services in the areas of mobility and cloud are starting to bear fruit. Gijima’s mobility framework, which includes Mobile Device Management, application development along with the ability to integrate into existing legacy platforms is complete, and the market has begun to show good interest in the solutions,” the statement read.