Picture: ISTOCK
Picture: ISTOCK

Ayo Technologies has posted a strong set of financial results, albeit off a low base.

The company’s revenue rose 93% from R349m to R675m. It attributed the performance partly to a contract with an unnamed multinational group that commenced in July 2018.

“Work on the contract is progressing very well, with positive feedback from the client and Ayo expects to obtain new contracts with other multinational companies,"  it said.

“The primary drivers of revenue are organic growth and acquisitions,” said Ayo CEO Howard Plaatjes.

Ayo’s assets grew  16% to R5.2bn. Its cash position is R700m less than the R4.3bn investment by the PIC in 2017. 

Ayo is embroiled in a legal tussle with the Companies and Intellectual Property Commission (CIPC), which in February served the Public Investment Corporation (PIC) with a compliance notice instructing its directors to recover the R4.3bn the asset manager invested in Ayo when it listed. 

The PIC bought a 29% stake in Ayo at R43 a share in December 2017, implying a valuation of R14.8bn, despite Ayo having a book value of R67m that year.

Last week, Ayo had the order by the CIPC set aside in the Johannesburg high court. The CIPC had issued an order for the PIC to recover the R4.3bn it invested in Ayo when the company listed in December 2017.

The court declared the order unlawful. But last Tuesday, the PIC said it would forge ahead with plans to recoup the money.

Plaatjes  said Ayo “is of the opinion there is no basis for the PIC to recoup its investment”.

“There is no ongoing case around the PIC’s investment in Ayo.”

Ayo said it will continue its growth strategy through acquisitions by focusing on areas such as disruptive IT platform services.