The company reported diluted headline earnings per ordinary share of 8.04 cents, up 149.7% from 3.21 cents in 2011.
The antenna manufacturer reported that profit from continuing operations increased from by 51.83% to R7.233 million, but revenue declined marginally to R80.97 million, from R81.54 million.
No dividend was declared.
Poynting designs, manufactures and supplies antennas and telecommunication products to the cellular, wireless data and defence markets, both within South Africa and internationally through its subsidiaries and partner companies.
The company is divided into three main divisions, namely: defence, commercial and cellular coverage.
“The substantial increase in group profits was achieved, despite a slightly reduced overall turnover and substantial reduction in defence division profits,” Poynting said. “The reduced defence profit before tax still comprises 74% of overall profit.”
“The commercial division’s return to profitability is encouraging and helped to claw back at prior year losses. This is mainly the result of improved gross margins resulting from moving the manufacture of certain products to China, lower operating costs and Poynting Direct returning to profitability.”
According to Poynting, commercial sales were driven by cellular data users as well as machine-to-machine (M2M) cellular applications.
“The commercial division is finding healthy demand for its cellular antenna range. This division is also developing new Long Term Evolutions (“LTE“) or 4G antennas for the European market,” it reported.
“The local and international double digit growth in cellular data underpins growth in this division. The next generation (LTE/4G) cellular data technology promises to boost antennas as they require more than one antenna at end user devices to achieve optimal performance.”
The cellular coverage division is still small, with current sales in the division representing “only a small number of units mainly for pilot and trial systems,” Poynting said.
Looking ahead, the group noted that, financially, its commercial division only reached break-even in 2012. A number of structural changes in the previous year (2011) added “once off” costs to the division, Poynting said, but these were aimed at long-term improvements.
“The commercial division is hence poised and primed to produce profits in 2013.”
The company noted further that it intends to aggressively pursue company growth through acquisitions and investments aimed at entering new markets in the coming year: “We are building cash reserves and a healthy recovery in our share price puts us in a position where we can achieve considerable growth through carefully considered corporate activities,” it said.
The company plans further to improve it’s BEE rating from level eight, to level four – with the intention of achieving a level six rating within 6 – 12 months.