| Wed 17 Jan 2007, 10:37 | | GIJ - Gijima AST Group - Change To The Board |
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GIJ
GIJ
GIJ - Gijima AST Group - Change To The Board
GIJIMA AST GROUP LIMITED
Incorporated in the Republic of South Africa
Registration number 1998/021790/06
Share code: GIJ & ISIN: ZAE000064606
("Gijima AST Group")
CHANGE TO THE BOARD
Robert Gumede takes over as Executive Chairman of GijimaAst
Robert Gumede steps up as Executive Chairman of GijimaAst effective 1 January
2007. Gumede takes over the reigns from outgoing chairman Hans Smith who has
been appointed as a director of the Guma Group Board.
Gumede, a hands-on entrepreneur at heart and astute businessman was the pivotal
player behind the reverse takeover in July 2005 of AST to create GijimaAst, the
second largest listed ICT player and the only one with an "AA" Empowerdex
rating. The move at the time drew much market skepticism but one year later,
the merged entity has shown a return to profit, with a R22.8million profit
attributable to equity holders of the parent company, compared to a loss of
R64.8 million a year ago, before the merger.
Despite all the downsides, Gumede had the vision to identify and leverage all
the positives embedded in the embattled AST, which was mainly clients and highly
skilled staff. Today GijimaAst has over R300 million in cash, no short-term debt
and no overdraft. Gumede has proved that black-owned Guma has been able to turn
around the misfortune of the old AST. GijimaAst now has a visionary and hungry
young executive management team which is 45% black. John Miller remains as CEO.
"During my tenure I will continue to work smartly with the shareholders, board
and management to instill the client centric model that has played such a
pivotal role in the continued turnaround of GijimaAst. Our client centric
strategy which emanates from the old Gijima, allows management to be closer to
both client and staff. High on my list of priorities is the professional growth
not only of GijimaAst, but of the ICT industry as a whole. GijimaAst has become
an employer of choice amongst ICT executives. Succession planning is already
underway and we are looking at various projects to grow and develop the very
best ICT leaders for South Africa`s future. In addition, we are looking at an
aggressive organic growth strategy into the continent with our clients and I
believe that in the coming months we will see significant convergence and
consolidation of IT companies in the sector," says Robert. We would like to see
GijimaAst also playing and leading in that role. Gumede also hopes to see
GijimaAst declaring maiden dividends sooner than later as well as the market
understanding GijimaAst`s business better.
With over 3300 staff members, its 37% unencumbered black shareholding through
Guma (formerly Gijima) and a combined 45% black shareholding, GijimaAst is
ranked as the top BEE ICT services and solutions company in South Africa as
reflected by its AA Empowerdex rating. It also achieved a ranking of eighth out
of 200 JSE-listed companies in a Financial Mail survey during 2006.
In November 2006, GijimaAst also received the `Fidentia Top Empowered Company of
the Year: Information Technology` award for outstanding achievement as a leading
black empowered company in the IT sector and for outstanding contribution to the
growth and sustainability of the South African economy.
About GijimaAst
GijimaAst is an empowered ICT company listed on the Technology sector of the
JSE. Its` intellectual capacity, business model and extended geographic
footprint is unparalleled in the local market and provides clients with
sophisticated and diverse service delivery options in the solutions,
infrastructure, systems integration and networking arenas. Our competencies and
vertical market focus include experience in the manufacturing, mining,
telecommunications, financial services and retail markets, national and
provincial Government departments and state owned enterprises. For more
information log onto www.gijima.com or call (012) 6755000.
Ends
Issued by: Teresa Settas
Jiteno
(011) 918 8214 or 082 653 9935
teresa@jiteno.co.za
On behalf of: Thoko Mnyango - Group Marketing and Strategy Development
Executive, GijimaAst
(012) 675 5000
Centurion
17 January 2007
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 17/01/2007 10:37:28 Produced by the JSE SENS Department.
