Ansys has its sights set on further investments

AFTER significantly improving its cash position in the year to March, AltX-listed technology company, Ansys has set its sights on investing in new intellectual property and technologies.

Ansys, whose interests span the rail, mining and industrial, defence and cyber security and telecommunications sectors, yesterday reported massive increases in revenue and profits.

In the year to March, Ansys increased cash and cash equivalents from R27.6 million to R79.2m. Responding to a question about whether the company would consider a dividend, chief executive Teddy Daka said: “We want to be aggressive and use some of that cash.” But he said it was up to the board to decide on a dividend.

“Through constant innovation in design, development and manufacturing, we continuously improve our technology development and intellectual property generation in all areas of our business. This has served us well in serving our clients and position the group for future growth. Our strong cash position will enable us to continue investing in new IP and technologies, internally as well as through acquisitions,” said Daka.

He said the company was eyeing opportunities in fibre infrastructure roll-out, mining and cyber security.

In the year to March, Ansys improved revenue by 70 percent, from R474m in the corresponding period last year to R806m, while profit after tax soared by 239 percent from R20m to R67.8m. Headline earnings a share increased by 203 percent from 4.86 cents a share to 14.71c a share.

“We have had an immense year of growth,” said Ansys chief financial officer, Burt Lamprecht.

In the past financial year, the company has focused on cost containment. “In some segments it was easier and in some sectors it was a little bit difficult,” he said.

Overall, the company’s operating costs as a percentage of revenue was about 16 percent, down from 18.8 percent.

Ansys’ telecommunications business increased revenue by 109.8 percent to R428.8m. Lamprecht said the accelerated rollout of fibre optic networks and increased demand for data contributed to the higher revenue.

Speaking at the company’s results presentation yesterday, Daka said the telecommunications business was poised for further growth. “The demand for data still continues. Teledensity is still low.”

Lamprecht said growth in the mining and industrial business remained strong despite the depressed market conditions. Revenue in the mining and industrial business was up 109 percent to R89.3m, while profit soared from R4m to R7.7m. “This performance is driven mainly by mine safety and health obligations. A lot of the products that we sell (go) directly into that.”

Ansys shares were up 1.64 percent on the JSE yesterdayto close at R1.24.