As a niche market enterprise, AYO Technology provides effective information and communication technology (ICT) business solutions and services that enhance business performance in government and to corporate customers. The AYO Group comprises businesses that are leaders in their respective niche markets, have solid client bases and achieved high levels of sustained organic growth.
Companies in the AYO Group offer the following wide range of solutions:
- Health System Technologies – ICT solutions to the health care industry, such as hospital, primary health care, laboratory and pharmacy information systems, electronic health records, continuity of care records and telemedicine, backed by the necessary professional services, such as: consulting, system architecture design, system integration, business intelligence and development of bespoke software solutions.
- Saratoga Software – offers an integrated range of services, including software engineering, business intelligence, professional services, usability and design.
- Afrozaar – is a software consulting and product development business focused on the development of innovative software products in the mobile, digital and cloud environments.
- World Wide Creative – is a full-service digital innovation agency and technology product innovation consulting company.
- Digital Matter – is an IT specialist focusing on mobile application development including mobile inspection management, fixed asset management and solutions for clients in mobile field service, technician management, franchise evolution, mobile banking and plant commissioning.
- Emergent Energy – is a leading commercial, industrial and agricultural solar photo-voltaic solutions provider in South Africa, with the largest number of commercial-sized solar systems installed in the country.
- Puleng Technologies – provides their customers with a client-centric security strategy that manages the two most valuable assets in an organisation, being its data and users, while facilitating IT and business with a platform to build an efficient, collaborative governance, risk and compliance (GRC) programme. They also provide service-orientated infrastructure architectures that focus on the simplification, automation and operational efficiencies within and beyond the data centre.
- Kalula Communications trading as Headset Solutions – imports and distributes notable brands within telecommunications and consumer electronic markets. Headset Solutions is the distributor for all Plantronics & Konftel products in Southern Africa. Plantronics designs headsets for a wide range of devices, including phones, laptops, handhelds, entertainment and music devices. Konftel is a worldwide leader in the manufacture of audio conferencing equipment and the inventor of audio conference technology.
The AYO Group of companies has international partnerships with leading technology suppliers.
2017 OPERATIONAL PERFORMANCE
The AYO Group offers numerous end-to-end solutions to a host of industries locally, into Africa and abroad. They are specialists in their various business units and have an exceptional track record. The AYO Group acquired two businesses during the year under review with revenue taken into account for most of the year.
While the economic climate in South Africa remained exceptionally challenging during the 2017 financial year, as well as low economic growth, the various business units managed to meet and exceed their budget expectations through continued growth by developing their own software solutions for the health care sector and partnering with top international companies in long-term valued-added reseller agreements, growth at key clients supported by new customer accounts, strict control on operational and supplier costs as well as long-term professional services, projects and managed services. Annuity revenue continues to increase year-on-year, providing a platform for further future growth and expansion.
The AYO Group’s performance was ahead of budgeted expectations yielding a 154% increase in profits and 158% in revenue including BT.
VISION 2020 VISION – AYO technology’s CONTRIBUTION
In 2015, the AYO Group aligned is strategy in terms of Vision 2020 Vision by setting strategic levers, goals, activities and milestones, with clear deliverables for each business unit.
As part of AYO Technology’s Vision 2020 Vision, they aim to unlock shareholder value through listing their IT assets.
The AYO Group is on track to achieve its strategic objectives and milestones. During the year under review, progress was made against its strategic objectives and target areas.
2017 Achievements to date include:
- Penetrated markets outside South Africa by implementing and embarking on a proof of concept and a support contract for hospitals in Dubai
- Contributed to the technology required for the National Health Insurance by working with the CSIR on integrating existing clients’ data
- Developed and implemented an electronic continuity of care record
- Acquired telemedicine solutions by becoming a value-added re-seller and forming a joint venture to market the product
- Maintained service-level agreements at more than 95% of compliance
- Grew revenue by expanding customer base and maintained an efficient cost base
- Achieved new branding in terms of Publisher’s Toolbox
- Developed new product by using new technology
- Implemented phase 1 of the transformation from digital marketing agency to a strategic innovation agency
- Drove efficiencies by shifting from an internal development team to outsourced development partners
- Increased revenue from current key accounts through greater strategic value-adds
- Penetrated the African market with expansion into four new countries
- Closed the first Tracksmart deal and secured the rights to certify and distribute a battery powered safe GPS tracking unit
- Improved partnerships with financial institutions to package solutions for clients
- Secured long-term managed services contract with leading financial services and telecommunications organisations
- Introduced subscription-based cloud and managed services
- Penetrated the lower end of the market to cater for smaller contact centres and unified communications customers
PROSPECTS AND FUTURE OUTLOOK
The AYO Group is successful at retaining its client base in the long-term and its established foundation has set the platform for future business growth. These strategies have paid dividends and are a cost-effective way of providing a short- to medium-term source of income and growth and remain an integral part of their core strategy to develop new opportunities.
Acquiring and developing their own intellectual property is a key strategic focus area and will ensure better margins with resulting profitability. Increasing revenue is generated through the launch of AYO Technology’s own products and services into local and international markets. By extending their footprint into other parts of Africa and replicating their successes, it will ensure the sustainability of its businesses. As a medium-term opportunity, implementation services can be provided to first-world countries such as Australia and the United Kingdom. Opportunities are actively pursued to increase their market reach through partnerships and are culturally aligned with complementary businesses.
The future outlook for the various business units are as follows:
- Expand on proof of concept implementation and establish an electronic health record in African countries
- Expand clinical functionality at existing clients and explore data warehouse solutions
- Further develop opportunities to become a technology provider of choice
- Continue to explore the acquisition of companies with complementary technologies and services while growing organically through new developments
- Expand consulting service offerings into the international market and improve market positioning
- Grow product portfolio in the digital publishing and marketing sector
- Expand into new sectors with innovative products
- Retain business won
- Create and use a unique, consistent and persuasive consulting experience that attracts new clients and engages existing clients
- Expand client base into fuel and non-fuel tanker fleets
- Grow the footprint of certain projects into the rest of the clients’ operations
- Expand into new commercial sectors with innovative security products
- Grow cloud and subscription-based services across a portfolio for data and user security.
In the long-term AYO Technology needs to ensure that it remains relevant in its various sectors by investing in research and development and reducing its dependence on the South African economy by investing in structures to expand activities into Africa. This strategy is aligned with the concept of South Africa being a gateway into Africa with the intention of using the most appropriate South African and imported products to meet the needs of their customers in Africa. The AYO Group will continue with its organic growth strategy, coupled with acquisitive growth of complementary businesses and the acquisition and/or development of additional products.
The AYO Group has a service delivery footprint in all the cities of South Africa and has expanded into the United Kingdom, USA, Ghana, Uganda, Zambia, Cameroon, Tanzania, Nigeria, Namibia, Kenya, Zimbabwe, Botswana, Spain, Saudi Arabia, Ethiopia, Lesotho, Swaziland, Mauritius, Madagascar, Zambia and Malawi.
Detailed information about the AYO Group’s business model, stakeholders, risks and governance is available on the website at www.aeei.co.za.