ICT distribution, acquisitions boost Alviva
Alviva's revenue increased by 6% to R13.6 billion, from R12.8 billion in 2017.
The ICT products and services provider, formally known as Pinnacle Holdings, announced preliminary reviewed condensed consolidated financial results for the year ended 30 June.
In a statement, the company says: "Alviva produced a satisfactory performance for the year in spite of the market and economic conditions that were, and remain, prevalent. As we had cautioned in the interim reporting, the tougher trading conditions continued into the second half."
Alviva says notwithstanding, the group has delivered reasonable returns to shareholders. It points out that the results are predominantly attributable to the performance of the ICT distribution segment and Alviva's recent investments, mainly the acquisition of the balance of Datacentrix in February 2017 along with the investment into Alviva's share repurchase programme.
The group is well-diversified and most divisions performed well, showing encouraging growth throughout the year with the exception of its three infrastructure businesses: Datanet, Infrasol and Solareff, it adds.
In a statement, the JSE-listed company points out that further acquisitions have been finalised during the year and these will start to contribute more meaningfully in the ensuing reporting periods.
It attributes the revenue increase to the additional revenue from growth in the ICT distribution segment and acquired companies.
"The group performed reasonably well in all areas, except for the businesses exposed to what we refer to as infrastructure businesses, namely our manufacturing, cabling, contractual cabling and infrastructure work, and solar photovoltaic installations. The combined effect of the performance of these businesses was a reduction in net profit before tax of approximately R127 million from the previous year," Alviva says.
Additionally, expenses, although well-controlled, increased at a greater rate than revenue due to our diversification strategy and investment into certain key areas of the business from which future growth is expected. This left the group's EBITDA marginally down at R820 million (2017: R824 million).
The company says amortisation charges related to intangible assets recognised on business combinations increased by R34 million.
The average weighted number of shares, from which earnings per share and headline earnings per share are derived, at the end of June 2018 was 154 million shares (2017: 166 million). This was due to share repurchases and treasury shares purchases for the group's share incentive scheme, the company notes.
Earnings per share increased by 12% to 273.5c per share (2017: 244.2c per share) and headline earnings per share were up by the same percentage to 273.2c per share (2017: 243.9c per share).