| Fri 1 Aug 2003, 8:45 | | CCN - Making a call on the international contact c |
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CCN - Making a call on the international contact centre outsourcing market
CCN Holdings Limited
(formerly NetActive Limited)
(Incorporated in the Republic of South Africa)
(Registration number 1998/006000/06)
Share code: CCN
ISIN: ZAE000046819
("CCN" or "the Company")
JSE-Listed CCN Holdings Ltd has released its financial results in respect of the
year ended 30th April 2003, which is its first year-end financial results since
the sale of its ISP assets and the purchase of Call Centre Nucleus (CCN). The
annual report has been mailed to shareholders today. The unqualified audit
report is available for inspection at the registered office of the company.
The Group posted a net profit of R18 million for the financial year, after
interest income of R8.3 million; R14.5 million profit was generated from
discontinued operations, predominantly through the disposal of the ISP division
to Tiscali World Online.
"Revenue from continuing operations reflects the last 6 months of trading in the
outsourced contact centre service environment," says Lawrence Brick, CEO of the
CCN Group. "A loss of R4.9 million on continuing operations was incurred as a
result of investments made in strengthening the business during this time."
Although a loss was recorded, Brick says significant growth in contact centre
services has been realised, subsequent to the April year-end, with a platform
having been established to cater for future expansion and CCN is currently
profitable.
"The management team is optimistic about the outlook for the rest of the
financial year," he adds. "CCN"s objective is to deliver rapid improvements in
the efficiency and effectiveness of customer service delivery. We therefore
decided to invest in training, skills, infrastructure and management upfront to
ensure we can meet market demands, especially with the increased international
interest in outsourced South African contact centre services."
This interest is partly as a result of Trade and Industry Minister Alec Erwin"s
efforts to make the local call centre industry a key focus on a recent
investment promotion trip to the US.
Forecasting firm Gartner says in a new report entitled "US Offshore Outsourcing:
Structural Changes, Big Impact", that offshore outsourcing will have a major
impact on the US technology landscape. Around 500 000 of the 10.3 million US
technology jobs could move just in 2003 and 2004 and one out of 10 jobs in the
US computer services and software industry could shift to lower-cost emerging
markets such as India or Russia by the end of 2004.
CCN believes the adoption of offshore outsourcing solutions by US and European
companies searching for significantly lower customer-care costs will drive
significant growth in the South African contact centre outsourcing industry.
"As one of the largest outsourcers of contact centre operations in southern
Africa with over 200 highly skilled staff, CCN currently supports the customer
relationship management (CRM) strategies of many of South Africa"s leading
brands, primarily within the automotive, technology, telecommunications,
financial, retail and travel sectors. CCN is active in the international market
and is in a prime position to expand its services beyond the African continent,"
Brick says.
The company is currently undergoing Customer Operations Performance Centre
(COPC) certification, which ensures that all processes are in accordance with
global best practices.
"Our strategy over the next 6 months will be to continue our investment in
processes, people and technology, and to launch sales and marketing drives to
attract more local and international blue-chip clients."
During the year, the Group repurchased 2,8m shares amounting to 3.8% of its
issued ordinary share capital for R1.8m. Additionally, due to the early stage of
the contact centre business and the corresponding uncertainty on the level of
investment required to grow its presence both locally and internationally, no
dividend is being paid.
The Group"s cash balances increased from R48.7 million to R68 million primarily
due to the disposal of the ISP division.
