Ayo firmly on track as results show a 49% increase in revenue
Mainly from organic growth
JSE-LISTED Ayo Technology Solutions (Ayo) reported its maiden results in which it reported a 49 percent increase in revenue to R349 million, up from R234m for the six months to end February.
The increase in revenue was mainly from the organic growth in revenue and a rigorous approach to increasing margins through better sourcing across the business and driving new market share.
Ayo is one of South Africa’s largest black economic empowered information and communications technology (ICT) companies.
The group listed on December 21, only for two months of the reporting period, and in the five months to date it has already shown excellent organic progress in delivering on the strategy presented in its pre-listing statement, issued on December 13.
In the results, the group also reported a 55 percent increase in operating profit to R45m, up from R29m, while profit before tax increased by 173 percent to R82m, up from R30m, as a result of revenue, margin growth and streamlining of business processes.
Chief executive Kevin Hardy said he was exceptionally pleased with the interim financial results, especially since the company has only been listed for two months to this reporting date.
“Ayo is very firmly on track with its growth plans and is extremely well positioned on the JSE as a leading black economic empowerment information communication technology company and has exceeded all the minimum requirements. Ayo is in a favourable position to attract growing ICT spend across the South African market,” Hardy said.
The group also reported a 107 percent increase in headline earnings per share to 17.36 cents a share, up from 8.37c and 111 percent growth in earnings per share increased to 17.68c, up from 8.37c for the period under review.
The group’s asset base increased by 2 301 percent to R4.58 billion, up from R188m, and this includes the capital raised from the listing, which has been earmarked for further growth and acquisitions as per the pre-listing- statement.
Net asset value (NAV) increased by 23 717 percent to R4.36bn, up from R18m, due to the cash generated from the listing and the strong asset growth from its underlying investments.
The NAV per share increased by 14 565 percent to 1 257c a share, up from 8.57c.
The group did not declare a dividend during the period.
Ayo currently services customers in southern and northern Africa, Europe and Mauritius among others. Its strategic alliance with British Telecommunications South Africa provides access to global technology trends as well as access to the global market.
All its divisions benefited from the group’s synergies, ownership, empowerment credentials and excellent management expertise, gaining significant clients across several major sectors, including the financial services, as well as blue-chip corporations.
“While there is still much for our recently listed ICT Group to accomplish, I am delighted with the interim results to date, which have set an extremely solid platform for our business to grow,” Hardy said.
Ayo’s “Go to” strategy is set to capture between 5 and 8 percent of the vast South African ICT market by 2022.
Ayo shares closed unchanged at R29.50 on the JSE yesterday.