4Sight Holdings posts 16.9 percent increase in its revenue |

MULTI-national diversified technology group 4Sight Holdings, which re-domiciled its operations from Mauritius to South Africa at the beginning of the year, surged by 14 percent on the JSE as the group recorded a 16.9 percent revenue growth during the six months ended June 2021. Later in the day the share closed 4.76 percent higher at R0.22 on the JSE yesterday

4Sight said the 16.9 percent increase in revenue to R291.1 million compared with the R249.1m in the same period in 2020 demonstrated the strength of the diversified growth profile. It said key initiatives included implementing an account-based marketing strategy with an intentional approach in identifying and engaging with the top tier accounts using personalised buying experiences.

The group also segmented customers with a targeted focus for each tier.

Revenue, excluding consulting revenue, increased by 24.3 percent from R169.7m to R211m, which contributed to the increase in the cost of sales by 26.9 percent from R118.8m to R150.7m. “Gross profit increased by 7.8 percent from R130.3m to R140.5m and the gross profit margin fell to 48.2 percent in June 2021 compared with 52.3 percent in June 2020,” said the group.

The decline in other income of R50.7m includes R37.6m relating to Employment Tax Incentives recovered, foreign exchange gains of R11.1m on deferred vendor liabilities settled in the prior period and the profit of R3.1m on the disposal of a subsidiary.

The total operating expenses for continuing operations for the period decreased to R136.3m compared with the prior year.

The group changed its reporting currency from US dollars to rand with effect from January.

“Following from the fact that the South African rand is the predominant currency in the group, accounting for more than 99 percent of the net cash flows of the group, coupled with the fact that the group's shareholder base is now largely comprised of South African investors to whom financial reporting in US dollars is of limited relevance and the board also bases its performance evaluation and many investment decisions on South African rand financial information, the group changed its presentation currency from US dollars to rand from January 1” said the group.