Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      Starlink to South Africa: ‘We are ready to invest’

      17 June 2025

      Vodacom CEO Joosub bags R71m in pay – but taxman will take a big cut

      17 June 2025

      Major rift opens between Microsoft and OpenAI

      17 June 2025

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      South African AI energy start-up in R32m funding round

      17 June 2025
    • World

      Trump Mobile dials into politics, profit and patriarchy

      17 June 2025

      Samsung plots health data hub to link users and doctors in real time

      17 June 2025

      TechCentral Nexus S0E2: South Africa’s digital battlefield

      16 June 2025

      Yahoo tries to make its mail service relevant again

      13 June 2025

      Qualcomm shows off new chip for AI smart glasses

      11 June 2025
    • In-depth

      Grok promised bias-free chat. Then came the edits

      2 June 2025

      Digital fortress: We go inside JB5, Teraco’s giant new AI-ready data centre

      30 May 2025

      Sam Altman and Jony Ive’s big bet to out-Apple Apple

      22 May 2025

      South Africa unveils big state digital reform programme

      12 May 2025

      Is this the end of Google Search as we know it?

      12 May 2025
    • TCS

      TechCentral Nexus S0E1: Starlink, BEE and a new leader at Vodacom

      8 June 2025

      TCS+ | The future of mobile money, with MTN’s Kagiso Mothibi

      6 June 2025

      TCS+ | AI is more than hype: Workday execs unpack real human impact

      4 June 2025

      TCS | Sentiv, and the story behind the buyout of Altron Nexus

      3 June 2025

      TCS | Signal restored: Unpacking the Blue Label and Cell C turnaround

      28 May 2025
    • Opinion

      Beyond the box: why IT distribution depends on real partnerships

      2 June 2025

      South Africa’s next crisis? Being offline in an AI-driven world

      2 June 2025

      Digital giants boost South African news media – and get blamed for it

      29 May 2025

      Solar panic? The truth about SSEG, fines and municipal rules

      14 April 2025

      Data protection must be crypto industry’s top priority

      9 April 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » Alviva warns politics holding back growth

    Alviva warns politics holding back growth

    By Duncan McLeod7 September 2017
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Technology distributor Alviva Holdings (formerly Pinnacle Holdings) has reported headline earnings per share of 243.9c in the year ended 30 June 2017, up 23.3% from 197.8c a year ago.

    Despite “difficult market conditions”, net profit rose by 16% to R444m, while core earnings per share were up 25% to 256.3c. However, it warned that there is little prospect of economic improvement until after December, when the ANC holds its elective conference.

    Revenue came in at R12.8bn, up 16.8%, from R11bn previously. ICT distribution made up the bulk of revenue, at R9.5bn, with services and solutions contributing a meaningful R3.5bn.

    Cash generation was strong, up 70% year on year at R1.3bn.

    There is simply no confidence to encourage investment. We believe this to be temporary in nature but anticipate a tough six to nine months ahead

    The acquisition of IT services company Datacentrix was included in the results with effect from February 2017, which contributed positively to the numbers.

    “The strategy to diversify the group’s business from that of predominantly distribution is bearing fruit, with the contribution from the services and solutions cluster becoming more significant,” it told shareholders.

    “In addition, the focus on delivering profits into cash has transformed the gearing of the group and allowed us to make substantial investments while maintaining dividend payments.”

    Distribution margins were improved due to better management of inventory throughout the period, it added. Datacentrix had “a great year and executed several big contracts”.

    Contracts

    “The roll-out of the upgrade of the courtrooms with the department of justice, involving some 3 200 courtrooms throughout the country, has been taxing, both logistically and administratively, but is now close to conclusion. In addition, Datacentrix has completed technology upgrades in several countries for Barclays Africa.”

    It said the acquisition of renewable energy specialist Solareff is also paying dividends.

    The board has declared a final dividend of 25c (2016: 20c) per ordinary share.

    Businesses, too, have curtailed investment and are not as yet utilising the low interest rate environment to leverage up their balance sheets

    Alviva warned that the overall economy “faces challenging times” and it is “evident that, following the cabinet reshuffle in March 2017, households have been actively shoring up their balance sheets, reverting to a culture of saving and living more within their means”.

    “Businesses, too, have curtailed investment and are not as yet utilising the low interest rate environment to leverage up their balance sheets, meaning that conservatism is dominating economic behaviour at the moment.

    “There is simply no confidence to encourage investment. We believe this to be temporary in nature but anticipate a tough six to nine months ahead.”

    It said much will depend on the outcome of the ANC’s elective conference in December.

    However, with a “rejuvenated balance sheet”, group said it is keen to expand its offerings through acquisitions.

    Aliva was trading at R20.45/share at 11.40am on Thursday. The counter has added 18% in the past 12 months.  — (c) 2017 NewsCentral Media



    Alviva Holdings Datacentric Pinnacle Holdings Solareff top
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleNokia 8 Android flagship launched in SA
    Next Article Alviva announces two acquisitions

    Related Posts

    Joburg mall gets Africa’s largest rooftop solar installation

    12 August 2024

    Andile Ngcaba’s Convergence Partners to buy Datacentrix

    17 January 2024

    Rand shock for IT sector

    12 May 2023
    Company News

    Altron: a brand journey, a birthday celebration and a bet on Joburg’s future

    17 June 2025

    7 benefits of social media integration in WordPress

    17 June 2025

    Paratus Zimbabwe and PowerTel strike milestone deal

    17 June 2025
    Opinion

    Beyond the box: why IT distribution depends on real partnerships

    2 June 2025

    South Africa’s next crisis? Being offline in an AI-driven world

    2 June 2025

    Digital giants boost South African news media – and get blamed for it

    29 May 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.