Technology company 4Sight is looking for companies to help it grow its business around AI while leveraging its talent pool to find and retain the best staff.
In April last year, the group announced its first acquisition in more than six years, the R40 million acquisition of HR and payroll technology services provider XFour, aimed at enhancing its AI capabilities.
JSE-listed 4Sight reported strong results with annual sales to the end of February up 16.3% to R1.16 billion and operating profit up 45.8% to R71.7 million, adding that XFour had “made a significant contribution to the results”.
The division exceeded the revenue goals set at the time of acquisition by 64%, and XFour’s leadership is now “leading in human capital.” [function] Built into 4Sight, all staff are fully integrated. ”
It is no surprise that 4Sight CEO Tertius Zitzke is considering acquiring other businesses to help expand the group’s business.
“The first rule is to only invest in what is in your strategy to strengthen your existing business,” Zitzke told Business Day. “Security, for example. We have to do something about that side of the consulting business, so we’re looking at that.”
Zitzke values ”businesses that fit us culturally. People who believe in AI and technology.” [we have]”.
“I’m always excited about talent. The big thing about XFour is that they have three really smart business leaders. That’s what we want: to bring young talent into the business for the future of 4Sight. And they believed in our AI strategy and what we do.”
“I’ve already pulled one of its leaders out of that business. [XFour] He joined me in shared services at the headquarters,” he said.
4Sight reported that revenue and profit growth was driven by enterprise customers increasingly incorporating AI into core business and operational processes “to increase productivity, agility, and gain competitive advantage.”
Final earnings per share, excluding the impact of one-time financial events, increased 34.7% to 7.345 cents from 10.732 cents previously.
The group declared a final cash dividend of 3 cents per share.
“The main contributions to the margin increase were the reduction in our revenue mix and operating expenses, allowing us to take advantage of the margins achieved through improved internal efficiency. We implemented AI to increase production and make our existing resources more efficient,” said Eric van der Merwe, CFO.
“With increased utilization of AI tools at 4Sight, the company is more productive than ever, increasing its headcount by just 50 people during the period covered.”
Zitzke also mentioned the importance of leveraging the products and platforms of acquired companies.
“We also drink our own champagne as customer zero. That’s the principle. We comply with all these technologies and use them ourselves,” Zitzke said.
“That way we can speak the language our customers want to hear, and it’s easier to implement. I’m definitely looking at some products. [acquisitions] now. We hope to do it at least three or four times this year, but it has to be consistent with our activities. ”
“We follow the same recipe, which is very simple: 50/50 cash and stock returns. And we really want to retain talent as well.”
