Ansys in successful repositioning under new name of Etion

DIVERSIFIED digital technology group Ansys said on Tuesday that it had successfully repositioned its operations into a full-service provider of digital technology solutions that could be used within the sectors it already served and new ones.

The group said it had also changed its name to Etion, to symbolise its new strategy and core ethos of innovation, energy and action.

Chief executive Teddy Daka said the new brand would allow the group to take advantage of new opportunities as the digital revolution gained momentum both locally and internationally.

Daka said that the group planned to create, digitise, connect and secure both generic and bespoke digital technology solutions to improve the safety, productivity, connectivity and the cyber security of its customers.

Challenging trading Ansys reported a 46 percent decline in earnings before interest, tax, depreciation and amortisation (Ebitda) to R60.7 million in the year to end March, down from R113.1m recorded during the corresponding last year, while headline earnings per share fell 50 percent to 7.29 cents a share from 14.72c. The group blamed the results on challenging trading conditions during the period.

It said it was now experiencing an anticipated correction.

Revenue declined to R572.6m, down from R806m as compared to last year. Despite the decline Daka said Ansys continued to be profitable in accordance with the business transformation and growth strategy introduced in 2012.

“The results demonstrate the group’s resilience in the face of difficult macro-economic conditions, which saw several large clients either postpone or cancel orders during the reporting period.

They also reflect its successful efforts to improve margins, its stringent cost management measures, and its commitment to delivering meaningful value for its clients through an integrated and expanded solutions-based offering,” Daka said.

The group has continued with its growth path in the last three years, by reporting a compound annual growth rate of 46 percent in that period.

Gross margin improved to 28.3 percent, up from 26.3 percent, while tangible net asset value also increased 22 percent to 39.9c, up from 32.6c as compared to last year.

The group acquired 100 percent of the shares of Law Trusted Third Party Services (LawTrust), for R108.5m, funded from a combination of cash and Etion shares, effective from June 1.

The group said the incorporation of LawTrust’s technical team into the Etion team would allow it to develop and provide an expanded range of solutions to a combined client base.

LawTrust is an information technology developer and provider of cyber and information security solutions.

It said the acquisition would give it the capability to meet the most stringent digital security requirements, especially in the critical and rapidly developing area of the Internet of Things.

Ansys closed 20 percent higher at 60 cents.