JSE-listed AYO Technology Solutions Limited (AYO) has posted revenue and profit growth for the financial year ended 31 August 2018.
Revenue increased by 33% from R478-million to R639-million, with profit before tax up by 390% from R40-million to R196-million.
Total assets increased by 1 500% from R292-million to R4 671-million and net asset value increased by 6 570% from R67-million to R4 469-million.
Net cash generated from operating activities increased by 243% from R40-million to R137-million, and the group has declared a maiden dividend of 30 cents per share.
Naahied Gamieldien, acting-CEO and chief financial officer for the group, says: “I am pleased with our financial year end results to 31 August 2018, and am looking forward to the next exciting phase in the growth of AYO. AYO is well positioned on the JSE as a leading information communications technology (ICT) company, and is in a favourable position to attract growing ICT spend across the South African and African markets. The group has strong management expertise and a sound track record.”
Independent non-executive chairman of AYO, Dr Wallace Mgoqi, comments: “It’s been an unusually tough year in the market for AYO. However, despite media speculations and the resultant negative publicity, I am so proud of the AYO team as they remained focused, were not distracted by the ‘noise’ and remained determined to grow the AYO business in a sustainable manner, focussing on improved client service, with a special emphasis on job creation within the ICT sector and most importantly, increasing shareholder and stakeholder value.”
Post the financial year end to 31 August 2018, AYO announced its acquisition of 55% equity in Sizwe Africa IT Group, of which the transaction value for AYO is estimated to be R165-million for the percentage equity purchased.
“The acquisition of Sizwe is another indication of how our ambition to realise our goals and objectives that we set out in our strategy, are coming to fruition,” comments Gamieldien.
During October 2018, AYO announced that it had embarked on a R100-million fintech joint venture with Vunani, to expand the fintech platform and financial services activities. The interface between ICT and telecoms, a core enabler provided by AYO, is said to be expanded on and access to global partnerships will, over the next decade, be the great disrupter in financial services on the African continent.
Most recently, AYO also announced that it plans to participate in the government’s auction of batches of radio frequencies as well as the licencing of spectrum in the 700MHz, 800MHz and 2.6GHz bands, early next year.
Says Mgoqi: “We welcome the government’s decision for ICASA to sell spectrum for 4G services and 5G licences in early 2019 and 2020 respectively. For the first time, black ICT companies will have the opportunity to own such spectrum and to utilise it particularly for data purposes. That is our purpose – to facilitate access to data to all so that they may be empowered to use it to their advantage and growth.”