Sekunjalo TSG sold subsidiary FIOS to KPMG with effect from 1 March 2011
Publication Date: 10/11/2011
Sek TSG invested in FIOS in 2006 when business intelligence technologies were among the top 5 technologies purchased by CIO's internationally and high investment growth was achievable.
With product vendor marketing strategies having changed and an increase in product competition, consulting has become the core business. As such, the FIOS fit with KPMG's Performance and Technology services business is excellent and their significant skills and experience compliments the KPMG's service offering to their large corporate customer base.
The growth of Sekunjalo Technology Solutions Group Limited ("SekTSG") is continuing which is clearly reflected in its revenue and profitability increases of 61% and 133% respectively. With the disposal of the underlying FIOS operations, this division continues to fare strongly and is well positioned to attain further acquisitions to increase its focused product offerings.
During the financial year SekTSG acquired 51% stake in the startup company, Wisdom Global as part of its strategy to present innovative solutions to its customers.
Health System Technologies ("HST") is a leading provider of Hospital Information and Laboratory Information Systems for the South African public sector and continues to grow. Key customers include the Provincial Government of the Western Cape and the National Health Laboratory Services. The company has also developed its own Billing and Accounts Receivable software which is suitable as part of the IT solutions needed for the implementation of the future National Health Insurance scheme in South Africa. HST has had a very good financial year. The contract with the Provincial Government of the Western Cape has been renewed and secured for another three years with the regional pharmacy roll out in seven hospitals going live by the end of the financial year. Phase two of the laboratory information system contract was awarded in April 2011 and this implementation is progressing well.
However, as previously reported, the contract entered into between Amethst as part of the Baoki Consortium, and the Gauteng Department of Health for the implementation of the HIS has been cancelled by the Baoki Consortium. This action has been taken as a result of a non-delivery by the Gauteng Department of Health on their contractual obligations. While legal advice is being sought regarding the recovery of outstanding debts, the Baoki Consortium continues to engage with The Gauteng Department of Health in an attempt to get a revised project contract in place.
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