Antenna manufacturing company Poynting will again report a profit in the full-year to June, after reversing a half-year loss earlier this year.
The company, which is listed on the JSE, designs, manufactures and supplies antennas and telecommunication products to the cellular, wireless data and defence markets in SA and internationally. Its export markets include Europe, the US, the Middle East and Asia.
Poynting told the market on Friday that earnings per share would be between 2.18c and 3.68c, while headline earnings per share are expected to be between 2.27c and 3.79c for the full year.
A year ago, the company reported a loss per share of 7.51c and a headline loss per share of 7.58c. Last year, it reported an operating loss of R9.4 million from revenue of R65.8 million as costs surged to R40 million, from R25 million in the previous full year. It made a net loss of R6.6 million.
Margins improving
“Revenue has increased, gross margins have improved and operational expenses were materially reduced compared to the previous financial year, and the company will generate a profit for the financial year,” Poynting states.
The company says its defence division exceeded expectations, and sales through its commercial division have stabilised. However, its base station division saw reduced sales in the second half of the year because of a general mobile network capital expenditure slowdown before the 2010 World Cup.
Poynting Direct, which sells commercial products to trade and retail customers, again showed satisfactory growth in revenue and contributed to group profitability, it says.
In March, the company said it had reversed its previous half-year loss to December. It grew revenue 32%, to R38.6 million, and made an operating profit of R3.93 million, compared with a previous loss of R2.11 million in the 2008 first half.
Poynting also made a bottom line profit of R2.26 million, compared with a R874 000 loss in the previous corresponding period. Headline and earnings per share also moved into positive territory, with both at 2.55c.
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Poynting reverses loss
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