Ansys revenue soars on the back of fibre optic network growth
Alt-X-listed technology business, Ansys, on Wednesday reported a 70% rise in revenue to R806 million for the year ended March 2017.
The group said that EBITDA improved to R113.1 million from R42.8 million in 2016.
Net profit was up 239.2% to R67.8 million, contributing to the 203% improvement in HEPS from 4.86 cents in 2016 to 14.71 cents.
Ansys consists of a portfolio of businesses that provide technology-based solutions to enterprises in sectors such as rail, mining and industrial, defence and cyber security as well as telecommunications, both locally and internationally.
By leveraging its own IP, it develops, produces, distributes and integrates bespoke and standard technology products and solutions aimed at improving client’s productivity, connectivity, safety and security.
The group’s telecommunications business increased its revenue by 109.8% to R428.8 million, compared to R204.3 million in 2016. The growth accelerated due to the rollout of fibre optic networks by all the major operators, on the back of continued growth in data and fibre technology demand.
The higher revenue, together with yields in efficiency improvements, contributed to segment profits increasing from R6.1 million in 2016 to R82.2 million.
Growth in the mining and industrial business remained strong, despite the depressed market conditions. Revenue was up by 109.9% to R89.3 million from R42.5 million whilst segment profit nearly double to R7.7 million from R4.0 million in 2016.
Mine safety and health obligations as well the need to improve operational efficiency at mines through automation, contributed to the growth, it said.
The defence and cyber security segment experienced 108.1% revenue growth to R187.6 million from R90.1 million, largely from the higher than expected sales volumes outside South Africa as well as the recognition of the full benefit of the acquisition of Parsec Holdings concluded during 2016.
Locally, however, the impact of budget constraints led to fewer opportunities, changes in product mix and reduced margins, Ansys said.
Rail segment revenue and profit declined in tough trading conditions. Revenue declined by 26.8% to R100.2 million from last year’s R137 million and segment profit reduced from R15.8 million to R5.5 million.
Looking ahead, group CEO, Teddy Daka said: “Our strong cash position will enable us to continue investing in new IP and technologies, internally as well as through acquisitions.”
“Opportunities in the fibre infrastructure roll-out are anticipated to remain healthy over the short- to medium-term”, said Daka. “We are also particularly excited by the opportunity to position Ansys as a leading company in the field of cyber security solutions, especially with the increasing threat of cyber theft and terrorism”.
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