Bytes Technology Group wants to earn more of its revenue from Africa, and is looking at which countries it can target for expansion.
Bytes, an Altron subsidiary, turned over R5.95 billion in the year to February, with the bulk coming from its local operations. The company operates in SA, the UK, Namibia, Botswana, the United Arab Emirates, Mauritius and Mozambique.
Rob Abraham, who was appointed CEO in February when David Redshaw retired as CEO after 22 years with the company, says too much of Bytes' revenue is earned in SA.
In addition, expansion opportunities locally are limited because the company is the leader in most of its fields, he says. “If you get too big for your sandbox, you have to find somewhere else to play.”
Abraham says the company wants to earn at least a quarter of its revenue outside of SA in the near future. However, he adds that this does not mean shrinking the contribution from local units, but growing revenue in Africa.
Bytes' current African operations are at different levels of maturity or expansion, says Abraham. Bytes' target is to be the leading SA-based technology firm on the continent, he notes.
The group is examining various countries on the continent to determine whether they are viable expansion targets. Abraham expects the board to sign off on a plan that will allow expansion further north during the next financial year.
Bytes will also consider buying out companies in the UK, he comments. The subsidiary, which is profitable, would buy out another firm if it could take a leading position in a niche or geographic area, says Abraham.
Bytes was formed about 40 years ago and now has 25 000 customers served by more than 4 000 staff members. Abraham says although the market has not bounced back yet, profit for the half-year is in line with expectations.
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