Stock in Poynting closed 7.5% higher yesterday, after it published its annual results; beating the broader market, which gained 0.99%.
Poynting, which is targeting turnover of more than R1 billion in the next three years, boosted revenue to R93.7 million in the year to June, from R80.97 million in the previous year. It says net profit gained 36.04%, to R9.4 million, as earnings before interest, tax, depreciation and amortisation gained 24.96%, to R18.5 million.
Stock in the company surged shortly after the results came out, gaining 12c, or 7.5%, to 172c.
Poynting has created a new business division that was formed as a vehicle to execute the CEO's growth plan, which aims to grow revenue to more than R1 billion in the next three to five years.
"This growth will be in the form of acquisitions of new businesses, including strategic acquisitions to expand current business divisions in terms of product and distribution and investing into completely new business areas," it says.
Poynting designs, manufactures and supplies antennas and telecommunication products to the cellular, wireless data and defence markets within SA and internationally, through its subsidiaries and partner companies. Poynting's export markets primarily incorporate Europe, the US, the Middle East and Asia.
The group operates as three divisions: commercial, defence and the recently-formed CCS. Poynting established CCS as a vehicle to invest in the micro base station market.
CCS made a loss before interest, tax, depreciation and amortisation of R2.4 million. Its expenditure relates to investment in product development, and profitability is anticipated in the 2014 financial year, says Poynting.
Poynting says defence and commercial should continue to show strong growth.
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