JSE-listed Poynting expects to report a profit for the half-year to December, after previously reporting a loss.
The group, which designs and manufactures antennas and employs more than 138 people, says earnings and headline earnings per share are expected to be between 2.41c and 2.62c. In the previous comparable period, it reported a loss per share of 1.01c and a headline loss per share of 1.04c.
Poynting says the move to profit is the result of “a significant increase in orders received by Poynting's Defence Division, at good margins”.
In addition, the Base Station Division, acquired in the prior financial year, produced better than expected revenue and profit.
However, falling exports resulted in lower sales in the Commercial Division. This has now stabilised and, together with aggressive reductions in the company's overhead expenses, losses incurred by the Commercial Division have been curtailed.
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 incorporated on 11 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.
Companies are required to alert shareholders as soon as financial results will differ by more than 20% from the previous period. Poynting's interim financial results are expected to be released at the end of March.
The news did not affect the company's share price, which was flat at 26c throughout the day.
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