Alaris's interim earnings surge 256%
DURBAN - Alternative exchange (AltX) listed technology holding company Alaris Holdings reported a strong set of financial results for the six months to end December, mainly due to the performance from its three divisions, Antennas, Cojot and mWave.
As a result, profit after tax surged by 260 percent to R23.1 million, up from R6.4m compared to last year.
Its revenue increased by 60 percent to R136.30m, up from R85m while headline earnings per share (Heps) increased by 256 percent to 19.27 cents a share, up from 5.42c compared to last year.
The group said Alaris Antennas was able to execute on three major orders while Cojot delivered on orders received in the second half of the previous financial year.
“Another contributor to the significant improvement is that mWAVE has been consolidated into the group for the full six-month period compared to only three months in the comparative period. During the comparative first half of financial year 2019, the group was impacted by a lower order intake,” the group said.
In Alaris Antennas, revenue increased by 12 percent to R60.5m and profit after tax increased by 50 percent to R14m, mainly attributed to three high value orders and on two fully developed products. The group said the strategy of focusing on closer client interaction earlier in the program cycle to ensure that Alaris products are designed into a larger system is bearing results.
“As a consequence of this strategy, Alaris executed on large repeat orders during the first half, allowing the engineering team to focus on the design of products that were identified in the product roadmap to secure future programs and new customers,” the group said.
Cojot increased its revenue by 88 percent to R41.5m while profit after tax surged by 240 percent to R12.2m, with the group attributing the performance to large sales orders secured towards the end of the previous financial year.
Another division, mWAVE, contributed for the full financial period compared to three months contribution a year since its acquisition.
mWAVE’s revenue was R34.4m and reported a profit after tax of R4.2m.
The group said the profit after tax in the first half was 27 percent more than the total profit after tax for the nine months consolidated in the 2019 financial year.
“Operational activities to align mWAVE with the group’s strategic objectives have been a key focus in the current period. A new ERP system was implemented in November which brought mWAVE onto the same platform as the group. It will assist us in tracking and driving margin improvement and mWAVE also completed the expansion of its premises in October last year,” the group said.