Poynting Holdings has reported increased income for the six months ended 31 December 2014, although results for the period are mixed.
The company reports that DS revenue increased by 13% to R42-million, and it now has cash on hand of R75,8-million.
The half year results were impacted by the R25,2-million fair value adjustment of the deferred consideration shares issued to the vendors of Aucom.
Headline earnings per share were positive, however the adjusted headline earnings per share from continuing operations decreased from 10.77 to 5.26 cents per share.
The loss making segments comprising of Commercial cellular end-user antennas, Cellular Coverage Solutions and New Business were disposed of to the former CEO Dr André Fourie.
The board believes the sale results in a more profitable and focused group.
The simplified group consists of:
* Defence and Specialised (DS) – DS designs and manufactures specialised broadband antennas as well as other related radio frequency products. DS’ products sell in the electronic warfare, frequency spectrum monitoring, communication, test and measurement, and other specialised markets. Clients are located across the globe, mostly outside of South Africa (Americas, Europe and Asia) and operate mainly in the homeland security market space as well as system integrators and frequency spectrum regulators.
* Digital TV (Aucom) – Aucom provides end to end solutions for radio and TV broadcasters. It designs, sells and implements integrated broadcasting systems and has specific expertise in digital television distribution, multiscreen as well as over-the-top (OTT) systems. Aucom is well positioned to assist broadcasters with the migration to digital television and radio services across Africa. A large increase is also expected in private content providers, private TV companies and private broadcasters.
Total comprehensive income for the six months for the group was R27,7-million, compared to R3,8-million in the comparative period, however, the financial results for the half year include items which are not representative of the performance of the underlying operations.
The single largest distortion of the results is the complex accounting treatment of the African Union Communications (Aucom) deferred purchase consideration shares, which for this period generated a R25,2-million profit due to the decline of the Poynting share price from 290c to 239c.
The loss-making businesses were disposed of for a consideration of R35,8-million and resulted in a profit of R2,4-million.
