Despite the year’s challenges, compounded by the devastation of COVID-19, Ellies is on the up.
Here are the highlights of Ellies interim financial results for the six months up to 31 October 2020 as evidence that the turnaround strategy, implemented throughout the organisation to sharpen performance, is working:
- Revenue increased by 1,9% to R656,7 million
- EBITDA increased by 1261,3% to R33,4 million
- Profit after tax increased by 143,0% to R12,9 million
- Total comprehensive income increased by 142,5% to R12,7 million
- Earnings per share up by 161,2% to 2,56 cents
- Headline earnings per share up by 181,6% to 2,37 cents
Taking the lead
The determined efforts of the business to drive efficiency, identify areas where performance can be improved, partnering with best of breed businesses to provide more products and services – and taking the lead on the growing demand for solar energy has proved the positive attitude of Ellies is good for business, under any condition.
Ellies Chief Executive Officer Shaun Prithivirajh explained: “Thanks to these key turnaround efforts, our operating expenses have reduced by 13,2% year-on-year to R163,6 million, the total comprehensive income of R12,7 million has increased by 142,5% from a loss of R30 million over the same period last year so our insights and direction is enormously encouraging.”
This is the result of several interventions, including:
- The Ellies board and leadership team streamlining an extensive portfolio so that products with less traction in the market are reviewed or retracted.
- Partners such as Vox Telecom were identified to provide fibre-to-the-home and satellite installations for customers through its extensive installer footprint.
- After acknowledging poor inventory management performance, Ellies opted to work with a third-party warehousing, distributions, and logistics provider which has resulted in significant improvements.
“We are also extremely excited by the potential of alternative energy solutions – specifically solar. We have developed innovative solar solutions for both residential and commercial markets and anticipate great interest in this space,” Prithivirajh noted.
“We have taken a future fit attitude to our business and are on track to create a sustainable and profitable business for all our stakeholders,” said Prithivirajh.
Ellies is an example of how to drive better operations and ongoing improvement, regardless of economic conditions. The business is looking forward to 2021, whatever it may bring.
Ellies Holdings Limited is an investment holding company for businesses involved in the manufacture, trading and distribution of a diverse range of products and services, inclusive of satellite television products and related accessories, electrical, signal distribution, residential and commercial LED lighting solutions, solar power, sound and audio-visual equipment distribution and installation.
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