Bumper year for South African IT distributors Pinnacle, Axiz, Tarsus
Alviva Holdings has published its year-end financial results, reporting that its Information and Communication Technology distributors had a fantastic year.
Electric vehicle charging station supplier GridCars remains loss-making, but Alviva said the amounts are insignificant.
“Axiz has had an excellent year and delivered a 40% increase in profit before tax, compared to the prior reporting period,” Alviva reported.
“This business was most affected by the product shortages, particularly with its Cisco product range, resulting in working capital overruns, customer delays and constantly rescheduled foreign exchange contracts.”
Alviva said there had been increased activity in the enterprise and software products portfolio recently that helped protect Axiz, to some degree, from the downturn in its personal computing portfolio.
“Pinnacle had a stand-out performance on the back of certain retail deals and its success in winning a substantial part of the National Student Financial Aid Scheme (NSFAS) tender,” stated Alviva.
“Although the NSFAS business has presented significant logistical challenges, the enhanced revenue has made this successful for the group.”
Tarsus, which Alviva acquired in June 2021 for R185 million, has performed well for the company.
“Tarsus has bedded down well into the Alviva stable,” it stated.
“Trading has been good, and Tarsus has delivered steady profits under a well-managed and disciplined team.”
Alviva said Tarsus’ profitability was ahead of expectations, with working capital and foreign exchange exposures well-controlled.
Its cloud business, Tarsus on Demand, has seen sustained growth and increased Alviva’s share in the market.
For the year ended 30 June 2022, Tarsus contributed revenue of R5 billion and R128 million profit to the group’s results.
Alviva reported R22.6 billion overall ICT sector revenue for the year. Therefore, Tarsus contributed 22% of the group’s revenues for this industry.
Alviva’s other ICT industry holdings include Obscure and VH Fibre.
“Obscure concluded certain sizable transactions during the reporting period, which had been in the pipeline for a number of years, and ended with revenue growth of 73%,” Alviva reported.
Its profit before tax increased by 95%.
Alviva said Obscure’s cybersecurity product portfolio is market-leading, and it remains confident that the business will continue to yield good returns.
“VH Fibre has continued on its path to recovery and recorded another improved profit performance,” it said.
In its services and system integration segment, Datacentrix saw its before-tax profit increase by 24% this year, which Alviva said is comfortably ahead of its main competitors.
Loading ...