Cape Town - JSE-Listed AYO Technology Solutions Limited (AYO), today announced its preliminary condensed consolidated financial results for the year ended 31 August 2019. AYO’s audit partners, BDO South Africa Incorporated, issued an unmodified reviewed opinion on the results. Despite the operating and economic challenges of 2019, AYO delivered a strong financial performance, posting significant increases in revenue and profit before tax, among other positives.
Commenting on the Group’s performance, Chief Executive Officer, Howard Plaatjes said: “These positive results are a testament to the tenacity and professionalism of our teams, as well as the excellent products and services the group companies continue to deliver to a wide range of local and international clients.”
Highlights:
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Revenue increased by 207% to R1.9 billion from R639 million in the prior year
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Profit before tax increased by 47% to R288 million from R196 million in the prior year
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Total assets increased by 11% to R5.2 billion from R4.7 billion in the prior year
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Earnings per share increased by 15% to 54.29 cents per share from 47.20 cents per share in the prior year
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Headline earnings per share increased by 11% to 53.53 cents per share from 48.32 cents per share in the prior year.
The improved financial performance was predominately derived from significant organic growth, as a result of a contract with a multi-national company that commenced in July 2018, and acquisitive growth in relation to the acquirements of Sizwe IT Proprietary Limited (“Sizwe”), and SGT Solutions Proprietary Limited (“SGT Solutions”).
AYO is South Africa’s largest black economic empowerment Information Communication Technology (“ICT”) Company listed on the Johannesburg Stock Exchange (JSE). The diversified technology group currently services customers in Southern and Northern Africa, Europe and Mauritius amongst others. It also has a number of strategic alliances with global brand leaders in their field that have assisted the group in attaining and maintaining its dominance in the local and international market.
Dr Wallace Mqoqi, Independent non-executive chairman of AYO also remarked on the Group’s growth: “AYO is uniquely positioned to tap into the increasing reliance on technology as a driver for economic sustainability. The AYO Group has a diverse basket of goods and the expertise to fuel this demand, which is reflected in the figures posted in this financial year. It also augurs well for the future.”
Further acquisitions and equity stakes for the year under review included interests in Global Command and Control Technologies (“GCCT”), a company specializing in the niche field of security, defense and maritime technology, assisting AYO in diversifying its portfolio into a new industry vertical. AYO also acquired a further 43% shareholding in Puleng Technologies, thus increasing shareholding in Puleng to 100%.
The Group has also identified a number of niche sectors for investment in 2020 and beyond, which will firmly cement the organisation’s position as a market leader in its category.
AYO also remains committed to transforming the African ICT sector and has adopted an integrated approach to addressing social value creation by simultaneously focusing on skills development and entrepreneurial support. This is part of its capacity building for the future, and another reason why AYO continues to attract forward-looking individuals and organisations as colleagues and clients.