The highlights of Ellies’ interim financial results for the six months to 31 October 2020 are evidence that the turnaround strategy, implemented throughout the organisation to sharpen performance, is working. Despite the year’s challenges, compounded by the devastation of Covid-19, Ellies is on the up:
- Revenue increased by 1.9% to R656.7-million;
- Ebitda, or earnings before interest, tax, depreciation and amortisation, increased by 1 261.3% to R33.4-million;
- Profit after tax increased by 143% to R12.9-million;
- Total comprehensive income increased by 142.5% to R12.7-million;
- Earnings per share were up by 161.2% to 2.56c; and
- Headline earnings per share were up by 181.6% to 2.37c
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 have all proved the positive attitude that Ellies is good for business, under any condition.
Ellies CEO Shaun Prithivirajh says: “Thanks to these key turnaround efforts, our operating expenses have reduced by 13.2% year on year to R163.6-million and 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 are enormously encouraging.”
This is the result of 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 have been identified to provide fibre-to-the-home and satellite installations for customers through our extensive installer footprint.
And after acknowledging poor inventory management performance, the company opted to work with a third-party warehousing, distribution 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. We have taken a future-fit attitude to our business and we are on track to create a sustainable and profitable business for all our stakeholders,” says Prithivirajh.
Ellies is an example of how to drive better operations and ongoing improvement regardless of economic conditions and the business is looking forward to 2021, whatever it may bring.
About Ellies Holdings
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 satellite television products and related accessories, electrical, signal distribution, residential and commercial LED lighting solutions, solar power, sound and audiovisual equipment distribution, and installation. For more, visit www.ellies.co.za or connect with the company on Facebook, LinkedIn or YouTube.
- This promoted content was paid for by the party concerned