JSE-listed information technology company Datacentrix hopes that its new Level 2 broad-based black economic-empowerment (BBBEE) accreditation will enable it to win more public-sector contracts, as government tends to award contracts to small, medium-sized and micro enterprises that have better BBBEE scorecards.
The company’s success in winning public- sector contracts has been dwindling each quarter and company resources invested in attracting government business are currently absorbing profitability.
“We have assessed our business strategies in the public sector and as far as we can tell, our approach is not the reason why we are not doing well in the sector,” says Datacentrix chairperson Gary Morolo.
The company was recently promoted from Level 4 to Level 2, as it has scored a 6.81 point increase in black ownership, a 0.91 point increase in employment equity and a 6.92 point increase in skills development on the BEE scorecard.
With a procurement recognition of 125%, it is now one of two JSE-listed com- panies to reach this position. Its performance in the areas of skills development, preferential procurement and enterprise development are reflected on the new scorecard.
The company’s financial period ended August, shows a 7% increase in revenue. Earnings before interest, taxes, deprecia- tion and amortisation decreased to R57.4-million, earnings per share went down by 28%, cash generated from opera- tions increased to R52.7-million and an interim gross cash dividend of 11.25 cents a share was paid.
Since 2008, the company’s managed services division has grown from 12% to 44%, while its infrastructure division has been reduced from 82% to 40%.
“We have no intention to sell our infrastructure division – to provide a complete service, we must have infra- structure. We do not want to contract it out at all. We look forward to our new BBBEE status propelling us into the future,” says Morolo.