Alaris Holdings releases solid annual results for the year

Centurion, 19 September 2017. Local JSE AltX listed technology holding company, Alaris Holdings (Alaris), released their annual financial results on the 19th of September. The continuing operations performed satisfactorily during the financial year, against the backdrop of a strong year last year and the strengthening Rand.

Highlights:

  • Revenue from continuing operations increased by 21% from R132.1 million to R159.4 million.
  • Normalised earnings from continuing operations decreased by 26% from R31.5 million to R23.4 million mainly due to the net foreign exchange loss in this period
  • Net cash from operating activities of R13.1 million for the year.
  • Repurchased a total of 40 million shares from Aucom management as part of the Aucom disposal transaction.
  • Shares in issue (less treasury shares) reduced to 116.1 million at year end.

“Revenue from continuing operations increased by 21%, which was supported by the acquisition of COJOT.  Operations performed satisfactorily in a challenging environment and despite the stronger Rand.  All is on track with a focused IP strategy and the synergies between Alaris and COJOT.”, says group CEO, Juergen Dresel.

Segmental Overview

Alaris Antennas designs, manufactures and sells specialised broadband antennas as well as other related radio frequency products. Revenue was up 5% and profit after tax increased from R33.9m to R34.9 million.

Alaris Antennas continued to be a leader in product innovation, adding 74 new products to its portfolio in the financial year to support future top line growth.  “To ensure that we remain agile and are able to adopt to our client’s needs in a quick and responsive way as the business grows, we have implemented various measures to ensure that our multi-disciplinary teams are working on a common goal to deliver high quality products”, Dresel remarks.

COJOT Oy is a Finnish based company which develops innovative broadband antennas to improve connectivity, coverage and competitiveness of radio equipment deployed to save lives and protect property. It contributed revenue of R36.3 million and profit after tax of R3.9 million. “A €1 million order from Europe was delayed and only received in June 2017, resulting in a lower than expected performance for the financial year ended 30 June 2017. This order will be delivered in the first half of the 2018 financial year, which will provide an excellent start to the year”, says Dresel.

Prospects

Alaris Antennas is diversifying territories and entering into new market segments where the Company’s core competencies find application. Management believes the business has significant potential for organic, as well as acquisitive growth where there is a complimentary opportunity in markets and products.

For Alaris Antennas, organic growth is stimulated and achieved through understanding customers’ needs and adding new innovative products to the portfolio.

A couple of projects are underway to improve Alaris’ operational scalability.

“The opportunities we have been involved in this past financial year have increased in size and relate to a wider geographical diversity. This supports our strategy of global growth and the diversification of our product portfolio” says Dresel.

 

Having the products designed locally by a team of engineers and manufactured at the Alaris premises in Centurion, distinguishes the business from value added resellers and makes Alaris competitive in the global market. This results in 86% of the revenue being received from exports.

COJOT is a customer intimate business where new product development is centered around the customer’s needs.

The business is complemented by partnerships with contract manufacturers and a professional service provider network to enable sustainable growth.

Investment into an inhouse accounting function, a standardised ERP and the planned CRM solution across the Group will further improve transparency and cohesive interaction between the various teams globally.

The Alaris and COJOT businesses are complimentary and the combined operations will allow existing customers to receive an improved service as well as an expanded product portfolio. “The integration of the sales capability and product portfolio of the COJOT and Alaris teams resulted in cross-selling of R2 million. Capitalizing on the synergies between the two companies, as well as cross-selling opportunities will remain a priority in the year ahead”, mentioned Dresel.

International expansion is an important part of the Group’s global strategy and management will remain on the lookout for further opportunities to increase the global footprint with specific focus on the United States.

For media related enquiries and interview opportunities with Alaris CEO, Juergen Dresel, please contact:

Sonja Balt

Alaris Holdings

E-mail: sonja.balt@alaris.co.za or investor@alarisholdings.com

Telephone: +27 11 034 5300

 

Alaris Holdings Summarised Consolidated Results for the Financial Year Ended 30 June 2017

Highlights

  • Revenue from continuing operations increased by 21% from R132.1 million to R159.4 million.
  • Normalised earnings from continuing operations decreased by 26% from R31.5 million to R23.4 million mainly due to the net foreign exchange loss in this period.
  • Net cash from operating activities of R13.3 million for the year.
  • Repurchased a total of 40 million shares from Aucom management as part of the Aucom disposal transaction.
  • Shares in issue (less treasury shares) reduced to 116.1 million at year end.

Click here to view the PDF

Alaris Launches New Websites

This past week, to coincide with the start of our new financial year, we have launched our new websites.

The project, which forms part of the revitalisation of our brand, has been a long, but very worthwhile process.  It started in the beginning of January with the creation of the concepts and subsequently, the implementation of a new Brand Blueprint, which delves into what Alaris as a brand, is striving to achieve.

The aim of the redesign is to make our websites more user friendly, eye-catching and professional. We have refined certain aspects of the old sites, particularly our specialised product search function on the Antennas website.  In addition, new features have been added, including a Quote Request form and an option to pay for orders by credit card.

The Alaris Antennas site is already starting to generate interest, with a number of quote requests and contact forms being received.

This gives us a glance of a very positive future for the new websites, and for the Alaris brand.

Please feel free to contact us via marketing@alaris.co.za with any feedback on

Resignation of Directors

Shareholders are referred to the SENS announcements released by Alaris on 23 December 2016 and 27 March 2017, regarding the disposal by Alaris of its entire shareholding in and loan claims against African Union Communications Proprietary Limited to MAS Holdings Proprietary Limited and Olympus Investment Proprietary Limited (together, “Aucom Management Associates”) in exchange for the repurchase by Alaris of an aggregate of 30 000 000 shares by Alaris held by the Aucom Management Associates and a further repurchase by Alaris of an aggregate of 10 000 000 of its shares from the MAS Trust, Tebogo Rashma and Rudolph Rashma (together, the “Transaction”).

In compliance with paragraph 3.59 of the Listings Requirements of JSE Limited, the board of directors of Alaris
(“the Board”) hereby notifies its shareholders that, following conclusion of the Transaction, Mr Heinz Weilert and Mr Jacobus Stefanus Villiers Joubert have resigned as an independent non-executive director and an executive director, respectively, with effect from Wednesday, 31 May 2017.

The Board thanks Mr Weilert and Mr Joubert for their contribution to the Company and wishes them well in their future endeavours.

Results of General Meeting

Alaris Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 1997/011142/06)
Share Code: ALH
ISIN ZAE000201554
(“Alaris” or “the Company”)

RESULTS OF THE GENERAL MEETING OF SHAREHOLDERS (“GENERAL MEETING”)

  1. INTRODUCTION
    Shareholders are referred to the SENS announcements released by Alaris on 23 December 2016 and
    27 March 2017, regarding the disposal by Alaris of its entire shareholding in and loan claims
    against African Union Communications Proprietary Limited to MAS Holdings Proprietary Limited and
    Olympus Investment Proprietary Limited (together, “Aucom Management Associates”) in exchange for
    the repurchase by Alaris of an aggregate of 30 000 000 shares in Alaris held by the Aucom
    Management Associates (“Disposal”) and a further repurchase by Alaris of an aggregate of
    10 000 000 of its shares from the MAS Trust, Tebogo Rashama and Rudolph Rashama (“Second
    Repurchase”) (together, the “Transaction”). Detailed information regarding the proposed
    Transaction appears in the circular to Alaris shareholders dated 27 March 2017 (“Circular”).
  2. RESULTS OF THE GENERAL MEETING
    Shareholders are advised that at the General Meeting of Alaris held today, 28 April 2017, to
    consider and approve the Transaction, the following resolutions set out in the notice of General
    Meeting were passed by the requisite majorities of Alaris shareholders as set out below:
    Notes:
    – Any terms appearing in title case in the table above and that are not defined in this
    announcement, shall bear the meanings assigned to them in the Circular and notice of General
    Meeting.
    – Villiers Joubert, Rudolph Rashama and Tebogo Rashama (together, the “Aucom Management”) and
    their associates were not entitled to vote in respect of Special Resolutions Numbers 1 and
    2 and were not taken into account for purposes of determining the quorum for Special
    Resolutions Numbers 1 and 2.
  3. GENERAL
    The board of directors (“Board”) and management of Alaris are pleased with the results of the
    General Meeting.
    The Board believes that the implementation of the Transaction is in line with Alaris’ strategy
    to focus on the development, manufacturing and selling of RF (Radio Frequency) products to global
    niche markets. The Disposal further aligns Alaris’ offerings with its value proposition of
    continuously evolving its intellectual property base to design products for specific customer
    needs. The Board maintains that each subsidiary of Alaris should enjoy fully committed resources
    to realise their full potential. With this in mind and based on the assessment of the available
    market size, the Board believes that the Disposal will free up much needed capacity to enable
    future international growth and acquisitions aligned to the core strategy. Alaris and its
    subsidiaries intend to make further acquisitions in due course. Being a client-centric
    organisation with clients based worldwide, Alaris and its subsidiaries intends to expand its
    global footprint to be closer to its clients. In addition, the Transaction gave rise to an
    opportunity for Alaris to repurchase additional Alaris shares from the Aucom Management who are
    leaving the group as a result of the implementation of the Transaction, at a reasonable valuation.

28 April 2017
Johannesburg

Transaction Advisor and Transaction Sponsor
PSG Capital Proprietary Limited

Alaris Holdings Limited Trading Statement

In terms of the Listings Requirements of JSE Limited, companies are required to publish a trading statement
as soon as they become reasonably certain that the financial results for the period to be reported on will
differ by more than 20% from that of the previous corresponding period.

Accordingly, a review of the financial results for the six months ended 31 December 2016 by management has indicated that:

  • the basic earnings per share (“EPS”) and headline earnings per share (“HEPS”) are expected to be between 5.94 cents and 6.14 cents, reflecting an increase of between 476% and 496% compared to the EPS and HEPS of 1.03 cents for the six months ended 31 December 2015; and
  • the normalised earnings per share is expected to be between 5.31 cents and 6.81 cents, reflecting a decrease in normalised earnings per share of between 9% and 29% compared to the normalised earnings per share of 7.49 cents for the six months ended 31 December 2015.

The decrease in normalised earnings per share is due to an increase in the weighted average number of shares as a result of the 49.5 million recallable shares relating to the Aucom earn-out period, which were not included in the weighted average number of shares for the six months ended 31 December 2015.

Normalised earnings is expected to increase by between 5% and 25% for the six months ended 31 December 2016 compared to R8.3 million in the comparative period.

The financial information on which this trading statement is based has not been reviewed or reported on by Alaris’ auditors. Alaris’ interim financial results are expected to be released on SENS on or about 6 March 2017.

Alaris Holdings Change to the Board of Directors – Appointment of a Director

In compliance with paragraph 3.59 of the Listings Requirements of JSE Limited, the board of directors of Alaris
(“the Board”) hereby notifies its shareholders that Mr Heinz Weilert has been appointed as an independent non-executive director with effect from 17 February 2017 in order to fulfil the obligations of the Company contained in the Companies Act, 2008 (Act 71 of 2008), as amended (“Companies Act”) and the Companies Regulations 2011, published in terms of the Companies Act, arising as a result of the Specific Repurchases as set out and defined in the announcement released on SENS on 23 December 2016. Mr Heinz Weilert will resign as a director of the Company as soon as the Specific Repurchase has been fully implemented.

Mr Weilert is a Chartered Accountant and a member of the Insurance Institute of South Africa. He holds a Master of Philosophy (Information and Knowledge Management) (Cum Laude) from the University of Stellenbosch and a Master of Commerce from the University of Witwatersrand.

He has been involved in executive and senior management positions and consulted to financial services, hightech
and media companies such as Eskom, REDISA, Legacy Group and Nedbank, for the past 20 years. Mr Weilert’s last two roles were as the Executive Head of Innovation for Nedbank’s Retail and Business Banking Clusters as well as the Chief Operating Officer of the Development Bank of South Africa.

The Board welcomes Mr Weilert and looks forward to his contribution to the Company.