On the back of a positive financial performance, ICT services firm GijimaAst is assessing the possibility of making acquisitions, says CEO John Miller.
The company now has cash balances of about R300 million, which Miller describes as "unencumbered cash, not destined for anything in particular at this point in time, except for R85 million earmarked to finalise the acquisition of Absa's 30% stake in jointly-owned DTS".
GijimaAst, he says, no longer has any short-term interest-bearing debt, and if something came on the market that looked reasonable, an acquisition could be on the cards.
It is likely that any firm GijimaAst targets would be in the ICT services industry, and not in ICT commodities - and with that in mind Miller says there is currently "nothing on the radar".
Another key requirement for GijimaAst is that any company it buys must have the backing of ongoing contracts, since that is where the value would lie in any company he would consider buying.
"I would like it to be annuity income generative," he explains.
GijimaAst recently reported a 24.4% rise in revenue, coming up just shy of R2 billion for the past financial year. It reported attributable profit of R38 million for the year, improving on last year's R49 million loss.
At the end of June, GijimaAst reported cash-on-hand of R174 million, which was higher than the previous year's figure of R57 million.
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