FRAXION



		31.4% Fraxion Holdings (Proprietary) Limited (Fraxion) develops advanced spend management software that enables companies to control, manage and analyse spending behaviour in real time. The solution, which integrates into most mid-range ERP platforms, has 15 000 users in Southern Africa and Europe.

The company operates from South Africa and the United Kingdom and generates revenue from licence fees and services associated with its spend management software solutions.

Overview of the year to 30 June 2007

The Fraxion software is aimed at medium and large organisations and has been deployed in divisions of several prominent companies over the last year, including Mr Price, African Alliance, Perishable Products Export Control Board (PPECB), Woolworths, ATKV and Standard Chartered Bank.

The company concluded a ‘White label’ agreement with Compass Group plc, which secured Chevron, De Beers and Siemens as clients. This ‘White Label’ solution is the only facilities management focused solution in the world.

Fraxion Version 3.1, released in March 2007, includes multi-currency and tax functions to support the company’s international expansion. Support for deeper integration into target ERP platforms is due late in 2007 through to mid-2008.

Fraxion received several awards over the past year, including a Department of Trade and Industry’s grant (SPII) and a Department of Science and Technology award for the most innovative emerging company in South Africa.

BEE

Fraxion has actively partnered with several BEE organisations. As part of its enterprise development programme, Fraxion sponsored the African Information and Communication Technologies (ICT) Achievers Award and the Institute for Local Government Managers with software donations. Fraxion will consider BEE ownership once the company has reached a more mature stage of development.

The future

As the Version 3.1 solution enhanced significantly the functionality of prior versions, Fraxion is expanding its direct sales capacity in both South Africa and the United Kingdom. Shareholder funding for this expansion has been secured and DTI grant funding (Innovation Scheme) has been secured for research and development activities. In the longer term, Fraxion will look to build a reseller-orientated sales strategy.