AltX-listed 4Sight Holdings, a diversified technology group, has announced excellent results for the first six months of 2022 – reporting a 13.1% increase in revenue and 8.5% in gross profit. Tertius Zitzke, CEO of 4Sight, says the results are testimony to the fact that the group’s strategy, revised and set in 2020, is working well.
“We have developed a unique value proposition in digital transformation as one of the few companies that can provide solutions that encompass both operational and information technologies and support the convergence delivered through a third leg called business environment – all coupled with deep domain knowledge. Our fourth cluster, channel partners, takes these solutions to market with our indirect model of 650 partners in mainly Africa, with the rest of the world set to expand into.” He continues: “At the financial level, our drive to focus on building 70% annuity income is also steadily strengthening our balance sheet and positions us well to take advantage of growth opportunities, where recurring revenue grew from 53% to 62%.”
SaaS revenue increased by 20% in this period. Most of 4Sight’s OEMs are now strongly supporting a subscription-based model. 4Sights’s own IP solutions are also being offered via subscription, so they have a more holistic and complete service offering for customers who adopt a more flexible model, contributing towards our recurring licensing growth.
According to Eric van der Merwe, Chief Financial Officer at 4Sight Holdings: “Normalised earnings grew by a significant 136.2%, with headline earnings per share rising to 1.288 cents per share, up from 0.545 cents per share.” This was achieved, notwithstanding the challenge on retaining and increase skilled and scarce resources. Willie Ackerman, Chief Sales and Marketing Officer, comments: “With remote working still being especially relevant, we are unfortunately seeing more and more global companies targeting the South African market for skills.” At the same time, though, Ackerman says that despite this, 4Sight is successfully leveraging rand weakness to support international clients using South African resources.
The company’s net asset value has also increased by 2.9% and its working capital by 11.2%.
Zitzke says action has been taken to ensure that project management and job costing capabilities are dramatically improved, and that all the current projects are on track. With 4Sight’s focus remaining on customer-centricity and delivering value, revenue from support and maintenance contracts grew by 20%.
Another highlight was the strong and ongoing growth in 4Sight’s channel, where they now have more than 650 partners across Africa and the Middle East. Expanding its channel is key to penetrating new markets. According to Zitzke: “Our extended partnerships and associated reach added to the overall software licence revenue increase of an astounding 81%. These partners remain integral in our dual go-to-market strategy of direct and indirect channels, adopted to ensure we achieve a balanced portfolio and minimise our risk.”
4Sight’s global expansion is well on track. The Namibian business is established and actively delivering in the region and solid progress is being made in the Pacific region as they pursue more Australian business opportunities.
4Sight also continued over the six months, with their drive towards optimisation and service excellence through the shared services model, coupled with continued investment powering for innovation.
“Based on our pipeline of projects, 4Sight’s strong performance looks set to continue for the remainder of 2022,” Zitzke concludes.
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