Poynting aims to grow revenue through acquisitions

MANUFACTURING group Poynting aims to achieve turnover of R1bn in the next three to five years through acquisitions and organic growth, it said yesterday.

Poynting designs, manufactures and supplies antennas and telecommunications products to the cellphone network provider and defence markets, both in SA and internationally.

The company said in yesterday’s results statement that acquisitions could add about R500m in revenue, with the rest coming from organic growth and new businesses.

Poynting had signed a binding heads of agreement to acquire Aucom in a deal that would “considerably enlarge the company and gives us further diversification in terms of products and markets”.

Aucom operates in the digital TV infrastructure integration and supply market in Africa.

“This market is new to us in terms of technology and region and is affected by entirely different drivers to those in the telecommunications and military communication markets,” Poynting said.

The drive of African countries, including SA, to convert from analogue TV to digital TV should provide Aucom with potential to “thrive over the next five to 10 years”, it said.

The two main divisions of Poynting, commercial and defence, grew revenue 10.97% and 36.57% to R43.4m and R47.3m, respectively.

The defence business is focused on the electronic warfare market that comprises monitoring, jamming and direction-finding antennas. The commercial antennas are used with or in cellular and wireless data end- user equipment. Exports made by the commercial and defence divisions increased marginally with the largest contribution coming from Europe and North America.

Poynting had succeeded in exporting uniquely locally developed technology into two of the largest first world markets against significant international competitors, the group said.

“We believe the export numbers are still low and that considerable growth in export sales is possible given the size of the international market for both commercial and defence products,” the company said in its statement.