JSE-listed Ellies Holdings on Tuesday reported a 102.4% increase in headline earnings a share to 42.46c a share for the six months ended October 31, compared with headline earnings a share of 20.98c a share for the six months ended October 2011.
The company’s revenue for the six months increased by 56.1% to R1.1-billion, compared with R721.2-million in the comparable period.
The earnings upsurge was primarily the result of growth in both the consumer goods division and the infrastructure division.
The consumer goods division delivered a 60.8% increase in revenue to R749.8-million and a 112% increase in profit before interest and taxation (PBIT) to R127.7-million, compared with R60.3-million in 2011.
The increase in PBIT was chiefly a result of the completion of the first phase of the Eskom Project Power Save, as well as significant growth in the lighting sector.
Meanwhile, the infrastructure division increased its revenue by 46.9% to R368.8-million on the back of greater volumes achieved by the power products sector, owing to investment and the testing of new product lines.
“We are exceptionally pleased with these results, in particular with the growth achieved through new product lines, as well as the solid relationships created with suppliers in the lighting field,” Ellies CEO Wayne Samson said in a statement.
Meanwhile, the company said it, together with its strategic partners, were well positioned to participate in and benefit from the introduction of digital terrestrial television (DTT) in Southern Africa.
“The DTT migration roll-out throughout Southern Africa is imminent, subject to [South Africa’s] Department of Communications finalising its legal issues,” the company noted.
Ellies had started exporting aerials and DTT dishes to other African countries.
The company stated that, with the continued weakening of the rand, greater export penetration into Africa was expected to continue.
Further, Ellies reported that, within its power products sector, subsidiary company Megatron has been appointed as the preferred equipment supplier for several solar and wind projects within the South Africa’s independent power producer programme.
“This is expected to have a significant effect on revenues for the infrastructure division in future.”
In addition, within the infrastructure projects sector, Megatron has won a number of tenders in its traditional markets from existing and new customers, while expanding into additional geographical areas.
Megatron is expanding its offering in this space to include water-related infrastructure.
Three contracts have been awarded in this field, one in South Africa and two outside of the country.