TCS seeks growth

Johannesburg, 07 Apr 2008

AltX-listed Total Client Services (TCS) is in several discussions that will see it broaden its service offerings and diversify its interests.

Speaking at its listing this morning, company CEO Shaheed Mohamed told new shareholders that its plans included entering into the utility space. TCS - formerly known as Labat Traffic Solutions - focuses on road traffic management solutions and services.

"We have an opportunity to add to the services we currently offer our local and provincial customers. Utility collection is similar to the services we are delivering at this point, but at the same time completely different. Entering this market would help us to reduce the risk of operating in the traffic environment alone, while enabling us to increase the value we add to our clients," he explained.

Additionally, new black economic empowerment partner Mvelaphanda Holdings is looking at other areas into which the company could enter.

"We chose Mvelaphanda specifically for this reason. There is a depth of expertise within the group which will be used to help us identify opportunities. They are committed to providing us with real value," said Mohamed.

Tightening relationships

TCS is also looking at making acquisitions which would enable it to expand its traffic management offerings, revealed Mohamed.

"There are many opportunities in the traffic management industry. Some of these we are organically growing towards, others will see us make acquisitions to provide us with a step up."

One of the opportunities available to the organisation is that soon to be implemented through the Department of Transport's Administrative Adjudication of Road Traffic Offences Act. This is to be introduced nationwide to facilitate a "more effective system" for traffic fine collection and a points demerit system to get "serious, habitual road offenders off our roads", according to the department.

"This project will see us moving from operating at just a local and provincial level to encompassing the whole of the traffic environment. We are already positioned to be supplier to the system, which [transport minister Jeff Radebe] says will help reduce the number of people lost on our roads to road carnage and the subsequent R18 billion economic losses."

Other avenues the company will pursue are CCTV capabilities and traffic intersection management tools, which could help relieve pressure on the country's road infrastructure.

As for the Department of Transport's much maligned electronic National Traffic Information System (eNatis), Mohamed said the organisation would soon make recommendations to the department, as some of the underlying problems involved in fine collection were not addressed.

"eNatis has not solved the problem of verifying driver residential addresses. This is a fundamental problem in enforcing the traffic laws - we are delivering fines out in the bushes only to find that the person no longer resides there."

TCS's first trade on the JSE's Alternative Exchange this morning saw shares trading at 47c each.