The telematics industry has been affected by the global economic downturn in the same way as most industries around the world, with DigiCore’s business operations in the United Kingdom, Europe and South Africa experiencing serious challenges in the 12 months to 30 June 2009.
There is good news from the downturn however. This vastly different trading environment has generated a great deal of innovation, creative thinking and belt-tightening among our executive and non-executive directors. This strategic approach will ensure that we emerge stronger in the post-recession period, with a master plan that will accelerate our growth and stability. Despite the decline in profits, it is important to highlight that the group remains financially sound and our management and staff productive and motivated.
The board and management have reviewed the corporate strategy with a view to pursuing DigiCore’s expansion strategy on the international front while repositioning local operations for the expansion of our product range and quality improvement.
There has been much more focus on staff training and executive development, stringent financial management and closer attention to issues of corporate governance and compliance. We have continued to stress the importance of working smartly and creatively.
We are also energetically pursuing government tenders despite the challenges that often occur in election years. As such, the board has held a number of strategic sessions to ensure the group is strongly positioned to service government at national, provincial and local levels. Equally, we have continued to improve our black economic empowerment (BEE) status in line with government procurement and supply-chain management policies. We are encouraged by the increase in the number of government tenders after a very quiet period, pre and post elections.
The board and its committees performed very well during the year with above-average attendance rates at all meetings.
The audit committee was strengthened by the appointment of a new chairman, Professor Ben Marx. A number of strategic sessions took place in response to the economic downturn to facilitate the growth of our business.
Corporate governance issues continued to take centre stage as the King III report, due for implementation in 2010, poses some challenges. As a listed company, corporate governance and statutory compliance have remained high on our agenda. The company has conducted the group’s business with integrity and professional excellence despite the severe downturn in the economy.
The group has continued to advance its BEE status and focus on employment equity, despite the serious challenge of sourcing more suitably-qualified women for board and executive positions. Our commitment to transformation remains steadfast, however, and we will continue to pursue our targets.
Our management and staff, under the leadership of our CEO, Nick Vlok, have maintained their high-performance culture, ethical behaviour and a high level of integrity. We are indebted to all our employees for their loyalty, commitment and support, helping the group record an excellent performance despite economic conditions.
My sincere appreciation and gratitude is extended to all my colleagues, board members and executives for the support and guidance they have given me in the past year.
To our clients and stakeholders, we renew our commitment to excellent and dedicated service and thank them for their ongoing support.
With strong management, committed staff and loyal clients, we are optimistic about the future and we have great confidence in this world-class company.