Poynting has improved its financial position in the six months to December after hiving off its unprofitable units.
The company, which reported revenue up to R75 million from R37.6 million, last year agreed to sell its loss-making units to its now former CEO Andre Fourie in a deal that saw Poynting also pay over 14 million shares. The company now only comprises its defence and digital television (through African Union Communications) units.
Its defence unit grew revenue 13% to R42 million, while African Union Communications is on track to achieve its profit warranty for the full year, says Poynting in its results commentary.
It adds disposal of the loss-making businesses has simplified the group and positioned it for growth. Its results show its headline earnings per share were positive, but adjusting this metric to remove the sold units showed a decline from 10.77c to 5.26c a share.
Although total comprehensive income for the six months for the group was R27.7 million, compared to R3.8 million in the comparative period, the results are skewed due to various accounting issues.
Poynting's discontinued operations, the units it has sold off, generated a loss of R6.5 million in the half-year compared to a loss of R6.1 million a year ago.
The listed company says its focus for the next six to 12 months will be to ensure growth and improved profitability of its two remaining units. Its decision to sell its unprofitable units was driven by the amount of time and investment required to turn them around.
At the same time, Fourie stepped down as CEO and was replaced by Juergen Dresel on an interim basis. Dresel co-founded the company and was MD of Poynting Antennas.
Poynting's stock closed 8.07% lower at R2.05 yesterday.
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