Alaris to raise more antennas towards US

AltX-listed Alaris Holdings, which sells broadband antennas and allied products, says it plans to grow its business in the US.

“International expansion is an important part of the group’s global strategy and management will remain on the lookout for further opportunities to increase the global footprint, with specific focus on the US,” the holding company said.

The significant increase in the US defence budget boded well for the group.

“The sales team has managed to unlock significant opportunities with new and existing customers in this market, providing an opportunity for the group to deliver against its client-centric model into the future.”

The small-cap said revenue from continuing operations in the six months to the end of December rose 21% to R102.6m. The group made a profit from continuing operations of R21.6m, from R12.9m a year before.

The company said its businesses “performed satisfactorily”, with Alaris Antennas having a “slower” interim period.

However, this was offset by a strong performance by the COJOT unit, which designs, develops and manufactures innovative antenna products that serve military and public safety markets globally.

Alaris Antennas designs and manufactures products in Centurion, Pretoria.

About 90% of its revenues come from exports, primarily to Europe, the Americas and Asia. The company said bias towards exports provided “a strong justification to increase the group’s footprint globally”.

“The company is expanding its geographies by entering into new market segments where core competencies can be leveraged,” it said.

Alaris said there was potential for organic and acquisitive growth “where there is a complementary opportunity in markets and products”.

R103m was the total revenue Alaris made from its continuing operations in the six months to December 2017, a 21% rise from the previous year