Get on track

Finweek English Edition - - Companies & Markets - SIKONATHI MANTSHANTSHA

ANSYS LIM­ITED A WEEK AF­TER AN­NOUNC­ING im­pres­sive fi­nan­cial re­sults for the year to Fe­bru­ary 2008, en­gi­neer­ing tech­nol­ogy and sig­nalling com­pany Ansys said it had clinched con­tracts val­ued at R64m to sup­ply track­ing and com­mu­ni­ca­tions tech­nol­ogy to State rail util­ity Transnet Freight Rail. Ansys grew turnover 54,6% to R122m and net profit in­creased 50% to R18m.

Ansys spe­cialises in the de­sign, de­vel­op­ment, man­u­fac­ture, in­te­gra­tion and sup­port of ad­vanced tech­nol­ogy sys­tems and prod­ucts for the defence, aero­space, man­u­fac­tur­ing and trans­port in­dus­tries. It has a R48m con­tract for 200 wagon iden­ti­fi­ca­tion and mea­sure­ment units to be placed on all of Transnet’s rail­way tracks through­out South Africa. There are an­other 1 400 units for which con­tracts have yet to be signed and Ansys is still ne­go­ti­at­ing to sup­ply train cab sys­tems (TCS, voice and data de­vices on trains) to the Richards Bay line.

Led by CE Al­lan Hol­loway, Ansys’ largest share­holder is non-ex­ec­u­tive chair­man Teddy Daka with 27%. The com­pany has a large in­sti­tu­tional share­holder base ac­count­ing for an­other 20% of its shares.

Al­though still heav­ily re­liant on Transnet’s in­fra­struc­ture in­vest­ment pro­gramme, Ansys has been try­ing – with con­sid­er­able suc­cess – to wean it­self off its heavy reliance on the pub­lic cor­po­ra­tion. Three ac­qui­si­tions helped re­duce rail’s con­tri­bu­tion to group turnover from 85% to the cur­rent 67% in the re­port­ing pe­riod to Fe­bru­ary.

Hol­loway ex­pects that reliance to de­cline fur­ther on the back of Ansys’ defence and com­mu­ni­ca­tions busi­nesses. In the cur­rent fi­nan­cial year Op­to­con, its defence op­tron­ics busi­ness, has won con­tracts worth more than R35m from Ja­pan, Turkey and China.

As Transnet’s in­fra­struc­ture in­vest­ment and the re­struc­tur­ing of Denel (an­other ma­jor client) have only re­cently been suf­fi­ciently demon­stra­ble it’s not un­rea­son­able for in­vestors to ex­pect earn­ings growth of at least 30% in the year to Fe­bru­ary 2009.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.