Thursday, September 6, 2018

Alviva revenue lifted by its ICT distribution segment

Alviva Holdings, formerly Pinnacle Holdings, on Wednesday reported a 6% rise in revenue to R13.6 billion for the year ended June 2018.
Earnings per share increased by 12% to 273.5 cents per share,  and headline earnings per share were up by the same percentage to 273.2 cents per share (2017: 243.9 cents per share).
Attributable profit was up 4% to R422 million.
The board declared a final dividend of 27 cents (2017: 25 cents) per ordinary share for the financial year ended 30 June 2018.
The results, Alviva said, are predominantly attributable to the performance of the ICT Distribution segment and its recent investments, mainly the acquisition of the balance of Datacentrix in February 2017 along with the investment into a share repurchase programme.
“The group is well diversified and most divisions performed well,  showing encouraging growth throughout the year with the exception of our three infrastructure businesses namely: Datanet, Infrasol and Solareff,” Alviva said.
Further acquisitions have been finalised during the year, and these will start to contribute more meaningfully in the ensuing reporting periods, it said.
“The group performed reasonably well in all areas, except for the businesses exposed to what we refer to as infrastructure businesses namely our manufacturing, cabling, contractual cabling and infrastructure work, and solar photovoltaic installations.
The combined effect of the performance of these businesses was a reduction in net profit before tax of approximately R127 million  from the previous year, the group said.
Additionally, expenses, although well controlled, increased at a greater rate than revenue due to our diversification strategy and investment into certain key areas of the business from which future growth is expected. This left the group’s EBITDA marginally down at R820 million, from R824 million in 2017.
The outlook remains uncertain with the South African economy facing significant challenges, Alviva said. “As the group is primarily exposed to this market, it is of concern to us.”
“Notwithstanding, we are confident that we will see a positive impact from the recent acquisitions and the diversification strategies implemented throughout the year in Centrafin and investments made into cybersecurity, outsourcing and managed services.
“The renewable energy outlook is more positive and the order book in this division has improved significantly. In addition, market demand is providing the Fibre division with good opportunities and is performing ahead of expectations.”

Post a Comment