A model young citizen
ANSYS AS ????? ANNUAL REPORTS GO, AltX-listed rail and defence systems business Ansys presents itself as a model corporate citizen, providing adequate information for a company of its standing without going over the top. Some corporates are prone to excess in that department as the grandeur of being listed goes to their heads. However, it seems Ansys’ 20 years of existence prior to its 2007 listing gave it a good grounding.
Ansys also can’t be accused of depriving analysts of sufficiently detailed segmental reporting; something that some other listed companies are guilty of. Interestingly, although the focus on high-value rail infrastructure projects – it’s a beneficiary of Transnet’s upgrade expenditure – fast- tracked its 54% increase in turnover in the year to February and contributed 82% of total revenue, Ansys expects a big jump in the relative contribution from defence contracts this year.
The big jump in rail revenues must account for the large increase in the salary of one board member, Rudi Barnard, who is operational director of that division. Ansys said he’d driven the diversification of the division to include railway signalling and had been instrumental in two of the three acquisitions since listing: Emerging Signals and QuadSoft. Barnard’s salary went from a very modest R290 000 in 2007 to R914 000, bringing him more in line with the remuneration of other directors.
Ansys directors’ salaries aren’t over the top and although there was a 43% jump in the total bill between 2007 and 2008 that can be explained by a number of factors: there was an increase in the number of directors (with the addition of a chief financial officer and another non-executive), the executive directors received bonuses that were presumably linked to the successful listing, and