Thanks largely to the R4.3bn that the Public Investment Corporation invested in the company, more than half of Ayo Technology Solutions’ pre-tax profits in the six months to February came from interest earned on money in the bank.
Ayo, which controversially received R4.3bn from the PIC in December 2017 in exchange for 29% of its equity, saw its cash balance decline to R3.6bn at the end of February partly due to acquisitions, dividends, and higher working capital.Meanwhile, Ayo said its interim revenue nearly doubled to R675m. It attributed the performance partly to a contract with an unnamed multinational group.
“The primary drivers of revenue are organic growth and acquisitions,” said Ayo CEO Howard Plaatjes, who also said the company “is of the opinion there is no basis for the PIC to recoup its investment”.