Broadband antenna manufacturer Alaris sees big earnings jump

JSE AltX-listed broadband antenna manufacturer Alaris Holdings on Tuesday reported a 17% jump in revenue from continuing operations, for the year ended June 2018, to R187.1 million.

Profit after tax from continuing operations increased by 43% to R32.9 million, with operating profit up to R42.7 million, from R37.3 million previously.

Normalised earnings per share from continuing operations increased by 100% to 30.5 cents, with diluted headline earnings per ordinary share from continuing operations up to 28.35 cents, from 16.03 cents before.

Net cash flow from operating activities increased by 229% from R13.3 million to R43.8 million, the group said.

Alaris Antennas, with its head office in Centurion, designs, manufactures and sells specialised broadband antennas as well as other related RF products. Its products are used in the communication, frequency spectrum monitoring, test and measurement, electronic warfare and other specialised markets.

Its clients are located across the globe, mostly outside of South Africa (the Americas, Europe and Asia). Its clients are system integrators, frequency spectrum regulators and players in the homeland security space.

Through Finnish company, COJOT, Alaris also designs and develops VHF/UHF/SHF wideband antennas and accessories for mobile tactical communication, electronic warfare and spectrum monitoring applications.

For Alaris Antennas, revenue decreased slightly by 1% to R122 million, while profit after tax (PAT) decreased by 7% to R32.5 million.

It said that delays in one particular project out of Europe to the value of R30 million consumed technical resources resulting in a delay in the delivery of other projects.

COJOT meanwhile, achieved significant revenue growth of 79% from R36.3 million to R65.1 million. Three large orders from Europe and the Middle East contributed to this increase, Alaris said.

Looking ahead, the group said it remains optimistic about prospects for the period ahead.

“By diversifying into different territories and entering new market segments, the management team’s key objective is profitable organic growth for both Alaris Antennas and COJOT. Both companies are strongly focused on research and development and hold exploitable patented technologies that can be monetized into the future,” it said.

The group also noted that processes are in place to capitalize further on synergies between Alaris Antennas and COJOT. “With their combined skill-set, sharing of ideas and pursuing cutting-edge technologies, customers will receive the benefits of an expanded product portfolio with more competitive features and excellent customer service.”

It also highlighted potential sales in the US. “The US administration has for the first time in a few years, voted for and approved an increased defense budget to the amount of $716 billion for 2019. This reflects an increase of $82 billion from 2017. The sales team has managed to
unlock opportunities with new and existing customers in this market providing an opportunity for the Group to deliver against its client centric model into the future,” it said.

“International expansion is an important part of the Group’s global strategy and management will remain on the lookout for further opportunities to increase the global footprint,” Alaris said.


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