Gumede in GijimaAst hot seat

Johannesburg, 18 Jan 2007

Robert Gumede stepped up to fill the position of executive chairman from the beginning of this year, says JSE-listed GijimaAst.

Gumede replaces outgoing executive chairman Hans Smith, who has been appointed as a director of the Guma Group, which used to be Gijima before the merger.

Gumede was instrumental in the success of the merger between AST and Gijima in 2005, which resulted in the creation of GijimaAst. A year after the merger, the company returned to profit with R22.8 million attributable profit in its last annual results, compared to a loss of R64.8 million a year ago, before the merger.

GijimaAst first announced its succession plan at its results presentation last year and Gumede says the company will continue to develop future leaders.

"GijimaAst has become an employer of choice among ICT executives. Succession planning is already under way and we are looking at various projects to grow and develop the very best ICT leaders for SA's future."

Growth strategy

In a statement to shareholders yesterday, the company - which has over 3 300 staff members - says it aims to continue growing.

"We are looking at an aggressive organic growth strategy into the continent with our clients and I believe that in the coming months we will see significant convergence and consolidation of IT companies in the sector," says Gumede. "We would like to see GijimaAst also playing and leading in that role."

GijimaAst has over R300 million in cash, no short-term debt and no overdraft. Gumede hopes the company will soon declare a maiden dividend.

The company's share price closed at 90c after an intra-day high of 92c. On Tuesday, it closed at 87c. Its 12-month high is 92c and its 12-month low is 44c.