Defence bolsters Poynting

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Antenna manufacturer Poynting says its defence unit grew revenue and profitability in the first half of the year, while its commercial business was mostly flat.

Poynting turned over R38.8 million in the first six months of the year, compared with R33.7 million in its interim period to December 2010. It reversed its previous R2.8 million loss, reporting a net profit of R1.9 million, after stripping out discontinued operations.

The company designs, manufactures and supplies antennas and telecommunication products to the cellular, wireless data and defence markets in SA and internationally, through its subsidiaries and partner companies, ITWeb reports.

Group earnings before interest, taxes, depreciation and amortisation (Ebitda) improved 110% to R5.81 million. Poynting says in a statement to shareholders that Ebitda is “the most representative indicator of profitability”.

Defence grew revenue 43%, while Ebitda jumped 128% during the first half of the year. Commercial’s turnover and profitability were about the same as the first half of last year.
“The defence division is focusing on considerable marketing and sales efforts to expand into new markets. We have seen good growth in sales to the US which is currently by far the biggest defence market in the world,” says Poynting.

Poynting’s commercial business has diversified its offerings and is growing its countrywide antenna installation service which is used by network operators, wireless solution companies and the general public.

The listed company says its commercial unit is moving the manufacturing of more of its largest volume antenna products to China. “We have built valuable relations and acquired rare experience in the past three years where we have been engaged in outsourced manufacture to China.”