Alaris profits tumble by a quarter

AltX-listed antenna specialist Alaris Holdings says profits for its year to end June fell by a quarter as Covid-19 delayed projects and disrupted shipments to clients.

The group said it had a strong first half, but profit after tax fell 25% to R31m in its year to end-June, while revenue fell 1% to R242.8m.

The group’s Finland-based COJOT business, which it acquired in 2016, saw a 32% decrease in profit after tax to R16m, as a result of customers delaying decisions during the pandemic.

Alaris Antennas in South Africa experienced supply-chain disruptions, issues around export permits due to government institutions being closed and limited flights to ship orders to customers globally. Profit after tax in this business declined 22% to R23.1m.

Alaris Holdings designs, develops, manufactures and sells specialised broadband antennas and other radio-frequency products.

The group, however, had cash of R110.3m at the end of June, from R41.8m previously, saying late invoicing in the prior comparative period benefited it in the early part of its 2020 year.

The group is considering acquisitions and merger opportunities, as it seeks to deepen and broaden its expertise in the microwave and radio frequency electronics space.

In morning trade on Tuesday the group’s share was unchanged at R2.38, giving it a market capitalisation of R299m and having risen 2.15% so far in 2020.