Revenue declines, but growth is up

DIVERSIFIED digital technology group Ansys reported a 23.1 percent decline in revenue from R408.6 million to R314.2m for the six months to September. The group said in its interim results released yesterday that earnings before interest, tax, depreciation and amortisation slowed by 17.3 percent from R57.2m to R47.3m. However, on an annualised basis, the group’s revenues have shown significant growth since 2015, with “a compound annual growth rate of 57 percent”. The 2017 interim period alone reported a growth of more than 160 percent. This, the group said, was partly due to exceptional orders, valued in excess of R150m, in its defence and telecommunications segments. The group, which is listed on the AltX, scored some growth in its gross profit margin from 24.9 percent to 31.7 percent, which it attributed to improved supply chain measures, while profit after tax decreased 19.7 percent to R28m compared with R34.9m in the previous period. Group chief executive Teddy Daka said that the interim results reflected muted market conditions, particularly in sectors such as rail. Ansys, however, was actively repositioning for future growth, which was expected to arise from the digitisation of operations in all of the sectors in which the group operated, according to Daka. “Our strategic focus is on repositioning Ansys to meet future needs and demands, something we believe will be of long-term benefit to our customers, shareholders and other stakeholders,” he said. Over the course of the past year, Ansys has repositioned itself as a digital technology provider, leveraging off existing technologies, capabilities and processes in order to offer solutions that go beyond its existing areas of focus. – Sizwe Dlamini SANDOWN CAPITAL