Antenna manufacturing company Poynting has turned over a profit in the first half of the year, compared with a loss a year ago.
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 is confident of good trade in its two key divisions during the rest of the year, and raised financing of R7.9 million from the Industrial Development Corporation to fund major projects.
In the six months to December, the company bolstered 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.
Shining divisions
The company attributes the reversal of its loss to its defence and base station divisions, which are operating profitably. Despite the commercial division seeing a decline in revenue, a reduction in costs aided this unit.
Overall, the company has seen a “significant” increase in profitability and its cost saving drive implemented over the past year-and-a-half is showing the desired results.
The company's defence division benefited from an increase in orders, with revenue growing 156% and pre-tax profit up 317%, to R4.8 million. The base station equipment division, which was acquired in the previous financial year, performed better than was expected, delivering a pre-tax profit of R1 million.
Decreasing exports, which resulted in lower sales in the commercial division, are stabilising and the unit is curtailing losses.
Poynting has its roots in an electromagnetic consulting business, first established by Andre Fourie, in 1990, at Wits University, under the name Givati Fourie and Associates.
In 1997, Givati Fourie and Associates underwent a restructure. As part of this, Poynting was formed in July 1997 with the name CCG042 Investments, to conduct business as a designer and manufacturer of antennas, including radio frequency identification tag design and antenna production.
Poynting's shares closed unchanged at 39c on Friday, the day the results were released.
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