“The year to 28 February 2014 saw Ansys successfully complete its restructuring programme for long-term sustainability and improved competitiveness, under the leadership of new CEO Teddy Daka,” the group said in a statement.
The group recorded an operating loss of 8.2 million rand for the year ended 28 February 2014 from 14.2 million rand in 2013.
Loss before taxation however decreased to 9.1 million rand for the period from 15.3 million rand in the previous comparative year.
[DATA ANS:Ansys] is a South Africa company that specialises in providing advanced technology systems for rail, mining, industrial and defence.
The group’s order book was up by 630 per cent to 190 million rand, but recorded a seven million rand loss for the year from 12.5 million rand in 2013.
“The group contained the loss for the year to 7 million rand, almost halved when compared to the previous year [from a loss of 12.5 million rand), a direct result of the restructuring programme,” Ansys explained.
Revenue was down to 65.8 million rand from 81.2 million rand in the previous comparative year.
(READ MORE: Ansys sees drop in revenue generation)
Cost of sales also took a dip to 42.6 million rand for the period under review from 74.7 million rand in 2013.
Gross profit declined to 23.1 million rand for the period from 33.5 million rand, and a basic loss per share of 3.8 cents compared to 7.5 cents in 2013.
Revenue for the group’s rail segment declined to 37.1 million rand for the period from 57.8 million rand, due to the delay in release of procurement packages and a longer than expected procurement cycle from our major client.
During the year Ansys secured the award of an 188 million rand contract from Transnet for an integrated dashboard display system for locomotives, and will be installed over the next five years.
Revenue for the group’s defence segment also declined to 15 million rand from 18.2 million rand in the previous year, which, according to Ansys, was expected.
Revenue for the mining segment declined to 6.2 million rand from 12.4 million rand in 2013. During the year Ansys improved its Broad-Based Black Economic Empowerment rating to a level four contributor from level five.
“The rail industry continues to grow and is expected to benefit from Transnet's planned 320 billion rand spend over the next five years,” Ansys explained.
“Our defence segment is likely to benefit from the anticipated increased spend on defence by the government. The telecoms segment will benefit from the planned FTTx rollout in a rapidly expanding sector.”