Technology distribution group Alviva Holdings has reported a 1% improvement in full-year revenue, though the number would have been “substantially” higher if it wasn’t for global shortages in semiconductors and other components.
And, it said, it expects the impact of the shortages to continue to be felt well into the first half of the 2022 financial year.
“The worldwide shortage of processors and components significantly restricted the group’s ability to satisfy its customers’ demands for products. Alviva had initially believed that this would be of a short-term nature, but it is now anticipated that product availability will only return to historical norms by the next reporting date,” the group said on Monday.
Despite the impact of the global technology product shortages on revenue, Alviva’s bottom line improved significantly compared to 2020’s reported numbers. This prompted the board to hike the final dividend from 15c to 29c/share.
The group managed its foreign exchange exposures “exceedingly well”, resulting in a gain on foreign exchange of R31-million. Headline earnings per share increased by 91% to R2.85.
The ICT distribution segment – Alviva’s main business – “recovered well”, with revenue, prior to the exclusion of inter-segmental revenue, up by 3% and earnings before interest, tax, depreciation and amortisation – Ebitda is a measure of operational performance – up by 37%. The distribution segment is made up of Axiz, Obscure, Pinnacle and VH Fibre. Axiz is the most significant of the businesses in this segment.
In the IT services segment, Datacentrix had a “challenging” trading period, although it “performed to expectations”.
Alviva’s R178-million acquisition of Tarsus Technology Group was completed after the financial year-end. The purchase price will be settled through the payment of:
- R100-million on 1 July 2021 (settled on payment date);
- R20-million on 1 January 2022;
- R33-million on 1 January 2023; and
- R25-million on 1 January 2024. – © 2021 NewsCentral Media