Business Report Companies

Refocused Unihold`s turnover `to top R880m`

Published

Johannesburg - Unihold, the technology company, should achieve turnover of

more than R880 million for the year to June 2000 after more than two years

of refocusing the group through acquisitions and disposals, it said

yesterday.

This would place the company in the upper echelon of local electronic

business solutions providers, assuming industry growth continues at the same

levels during the next year.

Gary Harlow, the chief executive, said the transformation of the company

into a convergence technology group was complete. The business had

successfully integrated its numerous acquisitions into a coherent entity.

"We purchased 24 businesses over a relatively short period and faced a huge

challenge in merging the skills, expertise and diversity of cultures."

Mike Struthers, the managing director of Unihold Business Solutions, said

the transition consisted of three phases. This included building capacity,

aligning strategy and creating value for Unihold`s customers and

stakeholders.

Earlier this year Unihold went through a protracted seven-month due

diligence with Atio before the deal eventual fell through. Harlow said the

focus on the Atio deal had delayed Unihold`s other plans.

But by acquiring Hix, the Internet company, for R14,4 million in the past

month, Unihold gained a virtual private network more cheaply than the

infrastructure would have cost to set up.

Harlow said this established business fitted in perfectly with Unihold`s

move to outsourcing and Hix`s Internet Service Provider capabilities would

be a good add-on for corporate clients renting virtual private network

space.

Unihold had also experienced strong growth in the e-commerce, customer

relationship management and networking divisions. In same period the

companybegan the internationalisation of its operations, opening offices in

London, New York, Montreal and Sydney.

Further offshore acquisitions in niche markets are planned to build critical

mass. Struthers believed Unihold was positioned to take on the technology

challenge.

Unihold`s shares have been less affected by the information technology

market turmoil than others. The company`s share price has been on an upward

turn this week and closed 2c stronger on the JSE yesterday at

R2,79.