Ellies shows first profit since 2014
Ellies Holdings, which on Monday reported its first profit since 2014, plans to grow its new corporate division and refresh its product range, says financial director and interim joint CEO Adrian Bock.
"I really do think that we’re turning the corner and certainly the turnaround strategy is starting to reflect the results that we hoped for, but we’re vigilant and we need to make sure that we stay the path, which we will do," Bock said.
Ellies made a total comprehensive profit of R18m in the six months to end-October, from a loss of R192m a year before, thanks to higher revenues and lower operating expenses.
Revenue growth was partly driven by a stronger than expected satellite business.
"We’re putting steps in place to grow other parts of the business," Bock said. The small corporate division was "starting to gain traction". The division focuses on providing lighting, satellite and solar products to corporate customers.
Ellies would also look to add new products to certain of its divisions.
"We won’t take undue risks, but we need to refresh ourselves a bit in terms of our offering," Bock said. "I don’t want to get too arrogant about it, but at the end of the day [the company] has stabilised."
However, given the uncertain trading environment, Ellies would be "proactive in terms of making sure we right-size the business further if need be".
Ellies has been given a lifeline by Standard Bank, which has agreed to restructure its debt.