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Ellies ups earnings 73%

Jul 23 2012 08:35
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Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

Johannesburg - Manufacturer‚ wholesaler‚ importer and distributor Ellies Holdings [JSE:ELI] has reported a strong set of results‚ with headline earnings per share up 73.3% to 54.45 cents for the year ended April 2012 from 31.42 cents a year ago.

Revenue grew 30% to R1.711bn‚ while Ebitda rose by 71% to R273.4m.

Ebitda margin was 15.9% compared to 12.1% for 2011. The increase is primarily as a result of improved margins in the Infrastructure division‚ it said.

Profit before tax rose by 73% to R230m as a result of improved gross profit margins and capacity utilisation‚ despite a loss from an associate amounting to R4.4m.

A cash dividend of 10 cents per share was declared.

Ellies in involved in diversified sectors‚ including consumer goods‚ renewable energy‚ and power and telecommunications infrastructure serving the local and African markets.

CEO Wayne Samson highlighted the “outstanding performance from the infrastructure division‚ which exceeded our expectations.”

“Megatron Federal not only performed above expectation financially‚ but from a technological perspective‚ it is a leader in its market‚ always providing cost effective‚ leading edge solutions‚ some of which have received international recognition‚” said Samson.

The infrastructure division reported a 158% growth in revenue to R559.2m and an increase in profit before interest and tax of 299% to R91.1m.

The improved earnings growth is mainly attributable to the improvement in product offerings across various sectors in which Megatron operates.

The consumer goods division achieved a full year profit before interest and taxation growth of 32% to R164.6m. The Ellies Renewable Energy division had successfully completed a third of phase one of the Project Power Save initiative by year end‚ with a total of 170MW currently removed from the national grid.

Looking ahead‚ Samson said Ellies remains prepared for the upcoming Digital Terrestrial Television (DTT) roll out in both South Africa and Southern Africa‚ with established strategic partnerships in place.

“Although there are no new developments to report‚ Ellies is looking forward to being involved in this project which will form a major part of our business activities for the coming year or two‚” said Samson.

The Ellies Renewable Energy division has proved to be highly successful and continues to roll out additional “shop within a shop “ renewable energy stores throughout the country‚ increasing market share in this space.

“We are exceptionally pleased with what ERE has achieved in this financial year‚ and look forward to the possibilities for the coming year‚” added Samson.

Megatron’s continued success is rooted in its strong order book‚ positioned towards sustainable earnings‚ as well as the pursuit of opportunities in South Africa and the rest of Africa. The division is finalising the sale of its first Bladeroom data centre. With interest from various sectors increasing‚ Bladeroom is poised for growth in the coming financial year.

“Ellies will continue to seek new opportunities‚ in the markets in which we operate‚ as well as expand on existing relationships and core businesses skills to ensure increased shareholder value‚” Samson concluded.

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