South African company Ansys has posted positive financial results for its defence division, which experienced revenue growth of 108% in the last financial year.
The company said its defence and cyber security segment experienced 108.1% revenue growth to R187.6 million from R90.1 million, largely from higher than expected sales volumes outside South Africa as well as the recognition of the full benefit of the acquisition of Parsec Holdings concluded during 2016.
Ansys consists of a portfolio of businesses that provide technology-based solutions to enterprises in sectors such as rail, mining and industrial, defence and cyber security as well as telecommunications, both locally and internationally.
The company’s revenue as a whole grew by 70% to R806 million while earnings before interest, tax, depreciation and amortisation (EBITDA) improved to R113.1 million from R42.8 million in 2016. Net profit was up 239.2% to R67.8 million, contributing to the 203% improvement in headline earnings per share from 4.86 cents in 2016 to 14.71 cents.
Speaking at the company’s annual results presentation, Group CEO, Teddy Daka said: “it has been an exceptional year for Ansys… These results reflect the group’s resilience despite tough operating conditions. They also reflect its clear strategic focus, successful efforts to improve margins and stringent cost management measures, as well as its determination to create meaningful value for its clients through its products and services.”
“We are also particularly excited by the opportunity to position Ansys as a leading company in the field of cyber security solutions, especially with the increasing threat of cyber theft and terrorism,” Daka said.
In June 2015 Ansys acquired Parsec, and transferred its mining and defence capabilities there.