|DigiCore Holdings, the listed high-tech fleet management and vehicle tracking company, expects the turnover contribution of its vehicle recovery business to grow to about R150 million by next June.
This follows the launch of its new service, C-track Bodyguard, which it has dubbed as a permanent bodyguard.
If a subscriber’s vehicle breaks down, a call to C-track’s support centre will send a team to secure the safety of the occupants. The service must be used in conjunction with the company’s C-track Secure and C-track Secure Plus vehicle tracking systems.
C-track has also been offering Accident Assist this year, in partnership with ER24.
Nick Vlok, DigiCore’s chief executive, said yesterday its technology enabled vehicle location with pinpoint accuracy, which was critical if the vehicle’s occupants were unable to make a phone call. It prevented delays in a vehicle and driver being discovered after an accident had occurred.
Vlok said the vehicle recovery business was becoming a substantial part of DigiCore, based on the first third of the financial year.
DigiCore reported 36 percent growth in turnover to R440.7 million in the year to last June. Headline earnings a share had improved 38 percent to 44.1c.
Vlok said C-track Secure’s subscriber base of about 19 000 was not big compared with market leaders Netstar and Matrix, but it was installing about 1 800 units a month and “starting to catch up”.
DigiCore could get to an installation rate of 2 500 to 3 000 units a month “very quickly” because of the foundations laid for the business, word-of-mouth recommendations and its marketing campaign.
“Installations have rocketed in the last six months and we have virtually no churn – that is, people cancelling our service and doing something else.”
Vlok said Bodyguard’s main objective was to complement the company’s roadside and medical assistance services and so provide cover for any problems on the road. It would also increase income slightly.
Vlok said the Bodyguard option, which cost R10 a month, was launched a month ago. The market response had been good.
DigiCore has installed more than 230 000 systems in 32 countries on five continents, but Vlok believes only Pakistan is a possible export opportunity for Bodyguard. “The European market has no need for it because there aren’t any hijackings or violence [against motorists] there.”
The share was unchanged at R9.85 yesterday. The electronics sector gained 0.94 percent.