JSE-listed radio frequency technology group Alaris Holdings on Wednesday said it performed “exceptionally well” in the financial year ended June 30, with profit up 25% year-on-year to R41.1-million.
Basic earnings a share and headline earnings a share increased by 21% to 34.29c, compared with the 28.35c apiece reported for the financial year ended June 30, 2018.
During the year under review, the Alaris Antennas business managed to conclude delayed projects from the first half of the year in the second half of the year and added 74 new products to its portfolio to support future revenue growth.
Alaris noted that one of the company’s key strengths lies in its ability to develop and hold its own intellectual property as it continues to invest significantly in research and development.
Further, Alaris concluded the acquisition of mWAVE, which added to Alaris Antenna’s 6% year-on-year revenue growth to R129-million.
US-based mWAVE was consolidated into the group from October 1, 2018, and had contributed R3.3-million in profit since then.
This business will trade through a newly created Alaris US division, selling and supporting specialised antennas and other radio frequency related products designed by the Cojot business and Alaris Antennas to customers in North America, especially in the defence market.
Alaris highlighted that mWAVE’s operational activities would continue to be aligned to the company’s strategic objectives in the 2020 financial year.
The Finland-based Cojot business achieved significant revenue growth of 29% to R84-million in the reporting year, compared with R65-million in the prior financial year. Alaris said Cojot had proved to be a particularly valuable investment, contributing 120% of the initial purchase price, net of cash in profits, to the group.
“Smart antenna activities are on the increase at Cojot, and the Midas product line that has been in development over the past few years is being applied successfully in hand-held radios.
“Cojot has several ongoing sales projects for switched beam array antennas and is confident that these antennas will assist with the future organic growth of Cojot,” the company stated.
The design and development of new products based on the uniquely combined skill sets of the company’s four segments would continue to provide competitive features and enable increased performance for end-users.
“All four segments relentlessly strive to provide their customers with a technological edge through constant product innovation and excellent service. The group’s global strategy remains one of bold international expansion.
“Prospects for the period ahead are decidedly positive. By diversifying into different territories and entering new market segments, the management team’s focus is to ensure ongoing profitable organic and acquisitive growth for the Alaris group and its stakeholders,” CEO Jürgen Dresel confirmed.
He added that the company was looking into more acquisitions in the UK and US.