Poynting Holdings

Company Description

Poynting is an antenna design and manufacturing business which that been operating in the telecommunications and military defence industries since 1990, providing South African and international companies with wireless and cellular end-user antenna applications as well as specific custom designed and manufactured antennas.

Poynting operates two divisions namely Defence and Commercial, each with its own CEO, strategy, research and development, logistics, sales and distribution teams (as they service niche markets). The two divisions share infrastructure, financial services and certain logistics functions.

The Commercial division manufactures end user products for the Wireless Data (WiFI/WiMax) and Cellular (GSM/iBurst/3G) markets and the Defence division sells custom designed direction finding, monitoring and jamming antennas for the international defence industry.

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Investment Logic

poynting-commercialThe Commercial division operates in an immature market that is currently undergoing significant technological advancement. The major opportunities are increased use of wireless technologies for broadband internet connections and the increased use of “machine-to-machine” communication using cellular technologies. This industry is in its infancy with very low penetration which should provide significant growth in the future.

The Defence division operates in a niche market with high barriers to entry. The use of wireless antenna technology is increasing and bespoke customisation and development is continuous. This provides a stable earnings base for the company and research & development that is useful for the Commercial division.

Poynting embarked on a fund raising by the issue of new shares to the PSG. Douglas Investments used this as an opportunity to place Conexus shares with PSG at  R1.60 which was 2 x money.

For more information on Poynting, please visit their website.poynting-logo-thumb