South Africa is to all intents and purposes, still an emerging economy. With that comes a series of rapid ups and downs, fuelled as much by emotion as it is by fact. In the grander scheme of things, we are still a young democracy, and we are still learning the ropes. However, given the exponential speed at which technology is influencing local and global businesses and everyday living, we need to grow up… and quickly. This agility is where AYO holds the trump cards.

The AYO Group, despite its size, is diverse and dynamic. It’s agility to go beyond adaptation to market condi­tions to driving them, is what will set it apart from the ordinary and help it champion the ICT industry across Africa… and beyond, in the years to come.

Inculcating and embracing diversity in all aspects of operations to enable our future growth, has been the underlying objective for our Group over the past 12 months. This has included:

• Assessing and analysing business gaps and prospects;
• Refining and solidifying AYO’s go-to-market strategy;
• Developing the processes that will enable the team to deliver on the strategy; and
• Attaining the milestones set for the Group in the pre-listing statement.

While building capacity and delivering on growth commitments simultaneously are mammoth tasks under ordinary circumstances, the relentless scrutiny AYO was subjected to by regulators, media and competitors added additional complexity.

It would be remiss of us not to record the fact that AYO was the central theme in the recent Public Investment Corporation’s Commission of Inquiry into alleged wrongdoing at the state asset manager, which is an investor in AYO. Findings have determined that AYO has not erred in any way.

That said, an inordinate amount of attention was focused on the Group – not all of it positive. Yet, despite this, our incredible team of professionals focused on delivering our products and services and our clients continued to believe in our capabilities. The results show that we have what it takes to succeed in a tough climate.

Beyond tenacity though, another key to our success this year has been our acquisition strategy. AYO began 2019 by acquiring 32% shareholding in Bambelela Capital (previously Vunani Capital). Bambelela holds a 50% shareholding in Vunani Limited – a diversified financial services company.

In December 2018, AYO concluded the acquisition of a 55% shareholding in Sizwe Africa IT Group. Sizwe is a major South African ICT service provider with annual revenues over R1 billion and is a certified level 1 B-BBEE contributor. The company offers a broad spectrum of services ranging from physical infrastructure, metro and long-distance optic fibre, networking and security to hosting, storage server processing, data centres and more. Their impressive client list includes major telecommunications networks, public sector agencies, SOEs and large private organisational clients.

Two other acquisitions involve a 40% equity interest in SGT Solutions and a 24% equity interest in Global Command and Control Technologies (“GCCT”). SGT earned annual revenues of over R400 million in the past year, while GCCT, a company specialising in the niche field of security, defence and maritime technology, has helped us diversify our portfolio into a new industry vertical.

Lastly, AYO acquired a further 43% shareholding in Puleng Technologies, thus increasing our shareholding in Puleng to 100%.

A key contract with a large multi-national oil and gas corporation has contributed to a 207% increase in revenues, from R639 million to R1.9 billion for the Group. Not only this, but it has also successfully tested our capabilities to service large organisational clients. The steady progress on the contract during the reporting period and the positive feedback, has inspired our confidence to expand our client base of large organisations in 2020 and beyond.

Overall, the Group delivered remarkable results. Gross profit growth of 182% to R559 million, our total assets increased by 10% to R5.1 billion.

Beyond that, the past 12-months have shown us just how strong and resilient we are.

There is an adage that says that, which doesn’t kill, makes one stronger. AYO is definitely stronger. It is certainly resilient, and it is, without doubt, well-positioned to lead in the years to come.

A rigorous gap analysis conducted over these past few months has led to the development of strategies that will unlock the capabilities we house within the Group. While many of our Group companies are the leading contenders within their respective niches, our strength lies in our combined forces.

The depth and breadth of our acquisition pipeline is the other spotlight in AYO’s 2020 focus. Our growth targets are based on diversifying our portfolio through acquisitions in emerging ICT sectors, such as cloud computing, the Internet of Things (IoT) and big data analytics. Such niche, but budding market segments present extensive opportunities for AYO, as market penetration of the associated technologies is relatively low in South Africa.

Developing a robust future is also enshrined in our Group commitment to developing the next generation of skilled professionals. AYO has an integrated approach to addressing social value creation by simultaneously focusing on skills development and entrepreneurial support. The ICT industry requires complex and constantly evolving skills and expertise, much of which is in limited supply, or has yet to be invented. Continuous investment in education is thus an important basis in our social development and transformation strategy.

However, education alone is not enough. Innovation is fuelled by opportunities. Creating opportunities for young entrepreneurs is a cornerstone in AYO’s integrated approach to delivering social value, and we look forward to reporting on some inspiring stories from such initiatives in 2020.

None of our achievements or future dreams would be possible without the guidance of our insightful Board, solid governance from our management team and, of course, the continuous commitment of our staff, who are the backbone of the AYO Group. Through the tireless efforts and loyalty to our shared vision of a fully transformed and inclusive ICT sector, we have together, built a resilient organisation that is ready to face the future.

I sincerely thank every one of you.

I also wish to acknowledge and thank our business partners, subsidiaries and clients who have provided support and integrity in the face of substantial adversity, but who have ultimately, been the champions of the impressive results achieved in 2019.

To you, our stakeholder, I thank you for your continued support and confidence in AYO to date, and for your shared vision for AYO to be acknowledged as a respected contributor to South Africa’s economic turnaround.