Confident Ayo says acquisitions are on the way
Ayo Technology Solutions said on Tuesday it was in advanced discussions on several deals and on track to capture up to 8% of SA’s information and communication technology market by 2022.
"Management remains confident that the forecasts in the prelisting statement to 2019 remain achievable, given new contracts and the expected acquisitions that Ayo will be announcing," said the company, which listed on the JSE in December.
In the six months to February, Ayo’s revenue increased 49% to R349m while operating profit rose 55% to R45m.
Ayo, which received a R4.3bn equity injection from the Public Investment Corporation on listing, said its net asset value rose from R18m to R4.4bn.
While the finalisation of some key projects and transactions had been delayed, this meant that the second half of the financial year was expected to be "much improved".
Ayo said its platforms business was conducting due diligence on three target companies, while its digital unit was in advanced discussions with another three.