Ansys, a South African-based firm that develops technology based solutions to enterprises, today unveiled its plans to reposition the business during the company’s result presentation and celebration of 10-years of being listed on the JSE’s Alt-X board held in Sandton, Johannesburg.
CEO Teddy Daka, who informed investors that the company’s headline earnings per share (HEPS) jumped 203% to 14.71 cents for the year to end March 2017, said the group will be reposition as a digital technology solutions provider.
HEPS is South Africa’s main profit gauge.
The tech firm, which also celebrated its 30-year anniversary, is to be repositioned along the four broad capabilities: safety and productivity, digital network connectivity, cyber security and original design manufacturing.
This part of a plan by Daka and executive team to broaden the company’s revenue base, provide economies of scale. The repositioning of the entity will also enable Ansys to leverage existing technologies, capabilities and processes and offer solutions beyond the existing business segments.
Daka, who was the company’s executive chairman, was appointed as CEO of the group earlier in June. While Nhlanhla Mjoli-Mncube, the lead independent non-executive director, was appointed as chairperson.
As part of plans to reposition itself, Ansys announced that Rynier van der Watt, an executive director of the board, will focus on the merger and acquisition opportunities in support of the growth strategy of the business.
“Opportunities in the fibre infrastructure roll-out are anticipated to remain healthy over the short- to medium-term”, says Daka.
“We are also particularly excited by the opportunity to position Ansys as a leading company in the field of cyber security solutions, especially with the increasing threat of cyber theft and terrorism”.
Daka added that the company’s strong cash position will enable the business to continue investing in new IP and technologies, internally as well as through acquisitions.
Ansys consists of a portfolio of businesses that provide technology-based solutions to enterprises in sectors such as rail, mining and industrial, defence and cyber security as well as telecommunications, both locally and internationally.
By leveraging its own IP, it develops, produces, distributes and integrates bespoke and standard technology products and solutions aimed at improving client’s productivity, connectivity, safety and security and are generally employed in harsh environments.
The company revealed on Wednesday a 70% rise in revenue to R806 million for the year to end-March 2017. It net profit was up 239.2% to R67.8 million, contributing to the 203% improvement in HEPS.
The company said it benefited from a clear strategic focus, successful efforts to improve margins and stringent cost management measures, as well as its determination to create meaningful value for its clients through its products and services.
The group’s telecommunications business increased its revenue by 109.8% to R428.8 million, compared to R204.3 million in 2016, benefitting from the rollout of fibre optic networks by all the major operators, on the back of continued growth in data and fibre technology demand.
While growth in the mining and industrial business remained strong, despite the depressed market conditions. Revenue was up by 109.9% to R89.3 million from R42.5 million whilst segment profit nearly double to R7.7 million from R4.0 million in 2016.
Mine safety and health obligations as well the need to improve operational efficiencies at mines through automation, contributed to the growth.
The defence and cyber security segment experienced 108.1% revenue growth to R187.6 million from R90.1 million, largely from the higher than expected sales volumes outside South Africa as well as the recognition of the full benefit of the acquisition of Parsec Holdings concluded during 2016. Locally, however, the impact of budget constraints led to fewer opportunities, changes in product mix and reduced margins.
Rail segment revenue and profit declined in tough trading conditions. Revenue declined by 26.8% to R100.2 million from last year’s R137 million and segment profit reduced from R15.8 million to R5.5 million.
“Over the years we have developed unique technology-based capabilities in safety and productivity, connectivity, cyber security and lastly original design manufacturing, leveraging these capabilities will be important as we seek to move beyond our existing business segments, but rather consider how we can apply these across multiple sectors”, says Daka.