South African antenna company Alaris set for strong growth

Alaris Holdings is known for producing some of the best antennas globally, but according to many industry players has not received the attention it deserves from the investment community.

The company has been listed on the JSE’s AltX exchange for 10 years and achieves healthy margins, due to the specialised nature of it product offering.

It has a healthy balance sheet and the companies which falls under the holding company – COJOT and Alaris – convert their profits into cash within a short period after invoicing.

“This will enable further acquisitive and organic growth in future, either by raising debt or equity funding, or by utilising excess cash as opportunities are identified,” Alaris CEO Juergen Dresel told MyBroadband.

In fact, Alaris has improved its global footprint in Europe and is in the process of finalising deals in the United States.

“This should further enable us to grab market share in these territories,” said Dresel.

“The US defence market covers about 60% of global defence spending. We already seen growth in US revenues in Alaris and believe this will further increase with the presence in the US.”

“The order size of the deals we have won have increased and the increased number of sizeable orders we deliver on show that we are seen as a trusted advisor to our clients.”

Strong financial performance

Growth for Alaris over the last four years has also been impressive.

Alaris showed a turnover of R103 million over its recent six-month period, with profit after tax (PAT) of R26.8 million.

Based on these numbers, Alaris has seen a 34% compound growth in revenue from 2013 to 2018, and 43% growth in PAT for the same period.


Future growth strategy

Dresel said this is set to continue, as their sales strategy is to target growing markets such as the United States, Middle East, Asia, and Europe.

“By establishing a US footprint with manufacturing capability, further access is gained to the largest defence market,” he said.

“The new entities product range does not overlap with the existing Alaris and COJOT product range, and therefore cross-selling a wider product range to existing and new customers will aid growth.”

The company’s production of customised equipment and designing of bespoke products for customers will also be relied upon for future growth.

“It is a crucial part of our success and is made possible by the strong technical capability we have in both COJOT and Alaris.”

Dresel said they plan to employ more sales people and travel to customer sites for face-to-face discussions, which will further enhance the trusted advisor relationship they rely on.

Now read: The small-cap South African tech company doing big things

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South African antenna company Alaris set for strong growth