AYO Technology Solutions sees big jump in revenue

JSE-listed AYO Technology Solutions, on Monday reported a 33% rise in revenue to R639 million for the year ended August 2018.

Profit before tax for the period increased by 390% to R196 million, ‘stemming from the organic revenue growth and interest income from the capital raised on listing,’ the company said.

Headline earnings per share increased from 5.66 cents to 48.32 cents and earnings per share increased from 7.86 cents to 47.20 cents for the year under review.

The group declared a maiden dividend of 30 cents per share.

“AYO has had a tough but successful financial year with excellent performance from its existing operations, with its expected future growth and on boarding of further targeted multinational customers AYO has invested in infrastructure, overhead and once-off costs for the year under review,” the group said.

Post the financial year end to 31 August 2018, AYO announced its acquisition of 55% equity in Sizwe Africa IT Group. Sizwe had revenue contributions exceeding R1 billion for its year ending June 2018, and employs 800 people.

The transaction with Sizwe will create further scale within the AYO platforms and will broaden its customer base, public sector presence and will contribute more than R1 billion revenue over the next 12 months towards the AYO Group, it said.

During October 2018, AYO announced that it had embarked on a R100 million fintech joint venture with Vunani, to expand the fintech platform and financial services activities.

Vunani employs over 300 people, and its operations include fund management; fund administration; investment banking (including securities trading and corporate advisory); and private equity.

AYO and Vunani intends to expand its existing fintech operations and enter new markets, both through organic growth and by acquisition.

Most recently, AYO also announced that it plans to participate in the government’s auction of batches of radio frequencies as well as the licencing of spectrum in the 700MHz, 800MHz and 2.6GHz bands, early next year.

Read: AYO Technology to acquire controlling interest in Sizwe Africa IT for R165 million

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AYO Technology Solutions sees big jump in revenue