Johannesburg - Amalgamated Electronic Corporation (Amecor) was expanding its operations by investing in higher production capacity and was eyeing the return on investment into infrastructure only after the 2016 financial year, it said yesterday.
Its two core assets Sabre Radio Networks, South Africa’s largest security network provider, and FSK Electronics, one of the leading designers and manufacturers of sophisticated data transmission technology, were moving into the African market.
In the half year under review, Sabre initiated a number of initiatives to expand its annuity billing footprint in the period under review, resulting in an annuity revenue boost of 54 percent compared with the previous corresponding period.
A market leader
It also launched its data transmission technology services into Africa with revenue from the African region outside South Africa expected to show incremental growth for the balance of the 2016 financial year as the initiative gains traction, chief executive Keith Vieira said yesterday.
“We are positive the expansion will establish Sabre as a market leader on the African continent in the longer term.”
The FSK business was expected to begin manufacturing and distributing the Rhino range of security panels, which includes control panels and which is scheduled to be launched in January.
The company said the products had been designed to meet the needs and requirements of the African market.
“Management is confident that the success of growth initiatives currently under way will lead to continued earnings growth for the balance of the 2016 financial year. Currency weakness may, however, place pressure on FSK’s margins in the future,” Vieira warned.
Amecor said yesterday that turnover for the six months to September jumped 18 percent to R61.1 million. However, profit fell 12 percent to R11.6mn from R13.2mn in the prior six-month period. Its headline earnings a share from continuing operations jumped 44 percent to 15.8c from 11c last year.
Amecor yesterday reported that it had declared a 9.5c a share interim dividend, which was 46 percent higher than last year. This comes as the group benefited from both reduced depreciation and a lower interest expense. Amecor’s shares closed 1.72 percent up at R2.95.
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