Ansys reports turnaround in fortunes

Alt-X listed software and technology group, Ansys reported on Wednesday (16 May) a turnaround in its operations, recording a pre-tax profit of R10.76 million for the year ended February 2012, from a prior loss of R2.43 million.

Revenue grew to R102.09 million, from R97.877 million in 2011, and EBITDA improved to R15.45 million, from a modest R1.98 million before.

Headline earnings per share improved from 0.14 cents to 5.06 cents from continuing operations, Ansys said. It added that HEPS increased from a loss of 3.86 cents per share to earnings of 5.06 cents per share.

“During the 2012 financial year, Ansys focused its business on existing rail and mining market segments, segments that have proven to have a track record of reliable revenue. Although total revenue for the year is modest, management actions in rejecting low profitability projects together with the containment of overheads have had the required effect on profitability,” the group said.

Strategically, Ansys said it remains focused on the rail market and in particular, on Trackside Measurement, Train Condition Monitoring, Yard Safety and Locomotive Communications. “This segment provides a pleasing revenue flow and form a key part of Ansys business. Yard safety projects have surged recently and in addition, Ansys has positioned itself as main contractor rather than as a sub-contractor in this segment,” it said.

Ansys said that the mining and industrial market remains exciting with excellent prospects.

“Although it has been decided by the board that defence is not a strategic focus of Ansys, production orders have materialised to a pleasing extent. These orders have not changed the board’s strategic view of the local defence segment and marketing will therefore still be kept at a minimum. The effective disposal of Optocon during the 2011 financial year has minimised further losses associated with this subsidiary in the defense segment,” Ansys said.

The group has been trading from two premises rather than four since the beginning of 2012, as part of the board’s strategic approach to reduce trading risks and keep overheads to a minimum.  One of these premises is a 1300m2 assembly facility in Centurion to produce all of the group products.

The final integration and merging of all the remaining businesses acquired in 2007 under the Ansys management and trading style was completed during the first quarter of the 2012 financial year.

The business of QuadSoft was divisionalised during the 2011 financial year into the rail segment of Ansys, as part of the integration process of products and customers.

The group said that order input has vastly improved in rail, mining and even defence. “The total group order book is currently at R49 million which is respectable for this time of the year. Most of these orders are for delivery in the 2013 financial year,” Ansys said.

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Ansys reports turnaround in fortunes