AYO Technology Solutions' half-year results show progress despite challenges

JSE-listed black-owned ICT company AYO Technology Solutions, which has received an offer from Sekunjalo Investments to acquire all its shares, said Friday its full-year results are expected to show a meaningful reduction in losses compared to the loss reported for the first half.

- EDWARD WEST

AYO’s results for the six months to February 28 showed a resilient performance under difficult conditions, and the company was on track with a clear path toward significantly reducing losses compared to the prior full year, its directors said Friday evening.

Revenue fell by 23% mainly due to the absence of one-time contracts from the previous year, as well as the unwinding of certain contracts that had contributed to prior-year revenue, but were not repeated.

On a positive note, the cost of sales fell 24%, in line with lower revenue. Improved inventory management and pricing strategies led to a 1.5% increase in gross profit margin, rising from 16.5% to 18%. Operating expenses were reduced by 2%, reflecting a disciplined approach to cost control. This reduction would have been even greater if not for certain non-recurring expenses emanating from a VAT write-off of R6 million and impairment of some receivables of R13m.