The business

IQuad is a specialised outsourcing company which focuses on delivering high impact strategic outsourcing services such as treasury management, investment incentives and BEE verification services.

Performance

IQuad has experienced a disappointing year with an operating loss of R14.8 million and a decrease in headline earnings per share of 18.6% to 37.6 cents. The operating loss where mainly due to an impairment of goodwill of R27 million. Investment Incentives posted decreased headline earnings due to a transition by the DTI from the SMEDP (Small and Medium Enterprise Development Program) to the EIP (Enterprise Investment Program). Global Trade Solutions Division performed well on the back of strong performance in customs duty recovery services and consistent performance by the Treasury unit while Verification Services continued to perform below expectation.

Prospects

IQuad has embarked on a restructuring process aimed at streamlining operations and increasing management focus on key opportunities. IQuad is expected to increase its earnings by focusing on high-impact opportunities within its current scope of business while continuing to look for an attractive sizeable acquisition.

Financial Highlights