Faritec to triple bottom line

Johannesburg, 16 Aug 2006

JSE-listed Faritec, with its initial goal of R1 billion in site, aims to triple turnover within the next two to three years.

Three years ago, the IT services and solutions company set the R1 billion in turnover goal, CEO Simon Tomlinson told a press contingent.

Faritec is in a period Tomlinson considers as being a catalyst for further growth. "The business is doing exceptionally well at the moment." In 1995, it had just fewer than 20 staff and a turnover of R12 million. Now, with 416 people on board, it is aiming for between R2 billion and R3 billion in the next two to three years.

Revenue growth for the 2006 financial year was budgeted at R540 million, said Tomlinson. Faritec, which will release its annual financial results around mid-September, budgeted for the 2007 year to reach just over R1 billion.

However, taking into account the two acquisitions during this year, 2006 revenue could feasibly move to R900 million. The company, which celebrated its 10th birthday last year, recently acquired Enterprise Connection and Lechabile Storage Solutions. These acquisitions have aided it in reaching its target, said Tomlinson.

Tomlinson believes further consolidation in the industry is inevitable. However, the company - while a possible subject of a takeover - would rather be the one doing the acquisitions. It seeks to purchase companies that can either aid it in maintaining its market position, or move into new areas.

Following the acquisitions, the company rebranded and refocused its divisions. It has also highlighted specific sectors that its sees as having growth potential. Tomlinson said the public sector, due to the vast amounts government will spend on infrastructure, and the small and medium sectors are its biggest growth areas.

In technology, it is focusing on growing the .Net environment, as well as security and integration. It also aims to go beyond SA`s borders into countries on the continent that are economically viable.

Currently 43% black-owned, the company seeks to reach and surpass the 50% milestone shortly. Tomlinson said it is in discussions with its two black empowerment partners, Canal Square and the J&J Group, as well as other entities.