Telecommunications and electronics group Grintek grew revenue and headline earnings per share in the year to 30 June 2001, despite a drop in revenue from its telecommunications business.
<B>Figures at a glance</B>
Grintek results for the year to 30 June 2001
Previous year`s figures in parentheses:
Revenue from sales: R1.19b (R1.08b)
EBITDA: R192.84m (R120.47m)
Profit after tax: R117.8m (R78.58m)
Earnings: R113.31m (R76.66m)
HEPS: 42c (38.7c)
Cash and equivalents: R166.87m (R214.35m)
Cash generated by operations: R188.36m (R110.04m)
Current assets: R910.83m (R611.1m)
Current liabilities: R655.79m (R425.26m)
NAV per share: 120.6c (103.8c)
Revenue by business:
Telecommunications: R648.69m (R720.71m)
Defence electronics: R408.95m (R273.83m)
Industrial electronics: R120.71m (R69.86m)
Corporate and other: R11.14m (R11.89m)
Revenue from sales in the telecommunications business, which is the largest of the Grintek businesses, fell from R720.71 million in the 2000 financial year to R648.7 million in the 2001 year.
However, the defence electronics and industrial electronics divisions showed strong growth in revenue during the period.
"As voice and data traffic continue to increase, network operators and service providers had to find ways to improve the efficiency of their available network resources," says MD Sybrand Grobbelaar.
"Grintek provides specialised niche solutions to this market, enabling our business to maintain acceptable trading levels notwithstanding the general slowdown in infrastructure expenditure during the reporting period."
He adds that margins improved as the group worked towards supplying systems with greater added value.
"The introduction of new solutions such as voice-over-Internet-protocol, based on world-class technology, established a sound foundation for growth of the business."
Grobbelaar says the introduction of a future second fixed-line telecommunications operator and the establishment of a new cellular network will require increased network capacity, and the group is well positioned and committed to provide elements of the new networks.
"The DC power and antenna business is also expected to benefit from the demand for upgraded and increased telecommunications network capacity," he says.
The Grintek share was unchanged at 270c on the JSE this morning.
Related stories:
Advent of third cell operator benefits Grintek
Grintek, Saab form new military communications company
Grintek R1b turnover mostly from telecoms
Share
