2014 was a year of significant changes for Poynting Holdings, with the sell-off of the Commercial Products (Compart) business to former CEO, Dr André Fourie, being the biggest event since its listing in 2008.
Announcing the results for the six months ended 31 December 2014, an increase in turnover for continuing operations of 101% is showing promise for the new, simplified business structure of the group.
Interim results highlights:
* Defence & Specialised (DS) revenue increased by 13%, from R37 million to R42 million.
* Total cash on hand is R75.8 million.
* African Union Communications (Aucom) management feels optimistic that it will achieve its profit warranty for the full year.
* Upcoming ARA acquisition – assuming a successful conclusion, will enable the group to secure a long-time goal of having a USA footprint to support the DS product range and increase distribution potential.
* DS continues consistent growth in turnover and profit.
* The sale of the collective business, known as “Compart” (commercial cellular end-user antennas, cellular coverage solutions, new business) simplifies the group.
“The two entities remaining with the group, namely DS and Aucom, are well positioned to grow further in their respective niche markets. It is important to note that the remaining businesses have the innovation DNA Poynting is known for and from which we have built a track record of innovating profitably.” says Poynting CEO Jürgen Dresel.
Aucom continues providing end-to-end solutions for radio and TV broadcasters. The business has specific expertise in digital television distribution, multiscreen and over-the-top (OTT) systems. Aucom is well positioned to assist broadcasters with the migration to digital television and radio services across Africa.
Defence & Specialised (DS) designs and manufactures specialised wide-band antennas and other related radio frequency (RF) products. These products sell in the Electronic Warfare (EW), frequency spectrum monitoring, test and measurement, communication and other specialised markets and finds application in the system integration, frequency spectrum regulation and homeland security market space.
Explaining the synergies between these two companies, Dresel says: “Apart from sharing engineering expertise in RF (radio frequency) technologies, both DS and Aucom are lumpy. Including these two companies within the same group means a better spread of operating cash flow, and ultimately results in profitable growth.”
Poynting Holdings will commence a re-branding and alignment process, which will be communicated to all stakeholders. Dresel concludes: “This is indeed a new era for the group and we believe that shareholders will gain benefit from our renewed focus.”
For further enquiries and interviews with Jürgen Dresel, contact: Elsjené Burger.