JSE-listed Alaris on March 24 posted a surge in earnings for the six months ended December 31 on the back of strong performance by its Alaris Antennas and Cojot business units.
The group’s headline earnings a share increased by 256% from 5.42c in the corresponding period last year to 19.27c in the half-year under review, while basic earnings a share increased by 255% from 5.42c to 19.26c.
Profit after tax (PAT) expanded 260% to R23.1-million, with the results of the combined operations for the first half of the year showing a substantial increase compared with the comparative period last year, when the group was impacted by a lower order intake.
“The strong results of Alaris can be attributed to a noteworthy first half in revenue for both Alaris Antennas and Cojot, compared with the corresponding interim period,” the company said on March 24.
Alaris Antennas was able to execute on three major orders, while Cojot delivered on orders received in the second half of the previous financial year.
Alaris Antennas’ revenue increased by 12% to R60.5-million and PAT increased 50% to R14-million, mostly attributed to the three high value orders, which included large volumes on two fully developed products.
Cojot also posted a “very good first half”, achieving a substantial revenue growth of 88% to R41.5-million, and a 240% increase in PAT to R12.2-million compared with the comparative period last year.
The strong growth was from large sales orders secured towards the end of the previous financial year.
Another contributor to the significant improvement was the consolidation of mWAVE into the group for the full six-month period, compared with only three months in the comparative period.
It achieved revenue of R34.4-million and a PAT of R4.2-million, which is 27% more than the total PAT for the nine months consolidated in the 2019 financial year.
Revenue was helped by a good order intake at the end of last year.
Meanwhile, the handover process of Alaris Antennas and Cojot customers in the US to Alaris USA, a new division under mWAVE Industries, has been completed.
On June 1, 2019, the new Alaris USA unit was created as a division to sell and support specialised antennas and other RF related products designed by Cojot and Alaris Antennas to its customer base in North America.
This entity contributed R6.4-million of the cross-selling from Cojot and Alaris Antennas.
Meanwhile, Alaris ended the half-year in a strong cash position of R82.1-million, with about 45% of the funds located in South Africa.
Late invoicing in June 2019 caused the recovery of funds in the first half of the 2020 financial year, which resulted in more cash in the bank, the company said.
Surplus cash will continue to support the group’s intention to expand the global footprint through suitable acquisitions.