Alviva’s profit up, declares dividend
One of Africa's largest ICT services providers, Alviva Holdings, has reported a 17% revenue hike to R15.9 billion for the year ended 30 June.
In line with the company’s policy to declare a dividend of 10% of headline earnings per share, the Alviva board declared a final dividend of 30c (2018: 27c) per ordinary share for the financial year under review.
The dividend declared is 11% higher than in 2018. Alviva also announced a 5% surge in profit to R860 million.
Alviva informed shareholders that the last financial year was difficult for the group due to stunted growth in the South African economy, to which the majority of its operations were exposed.
“..It would be of no surprise to advise shareholders that this has been a challenging operating environment. Notwithstanding, the investments made in new businesses have helped increase revenue and Alviva’s existing businesses have produced a resilient performance to allow the group to maintain its returns to shareholders,” the company said in statement to shareholders.
Despite the challenging environment, Alviva has made a series of acquisitions in the last 18 months to bolster its position.
In June this year, the JSE-listed Alviva announced it will acquire 70% of enterprise software company Synerg SA, for R90 million, through its subsidiary DCT Holdings.
In October 2017, Alviva, through its subsidiary DCT Holdings, agreed to acquire 51% of the shareholding in Sintrex for R102 million. It had an option to acquire a further 24% within two years. Sintrex is an infrastructure management company, based in SA, providing end-to-end IT solutions and services.
The company had three months earlier taken control of Gridcars. Through its 51%-held subsidiary Solareff, Alviva subscribed for a 75% stake in Gridcars for R3 million. Gridcars is a Pretoria-based developer of electric vehicle charge-point software management systems and a supplier of charge-points.
The acquisition forms part of Alviva's renewable energy business strategy and it believes that growing a network of charge-points in SA will be the enabler of a carbon-free transport system.