Stella Vista snaps up World Cup contracts 19/12/2008 |
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JSE-listed Stella Vista has won two contracts to provide video display screens at Attridgeville Super Stadium and Coca Cola Park (Ellis Park) by next year, in a deal that is expected to boost the company's future earnings.
Stella Vista manufactures video display screens that are used at stadiums. Some are used as scoreboards and others for advertising.
Stella Vista said although it had scored two contracts, competition had been fierce.
"Companies that we compete with at international level are now coming to [South Africa], hence competition for the [2010 Fifa World Cup] tenders has been fierce," said Ali Bacher, Stella Vista's chairman.
Bacher would not comment on the value of the tenders. The company competes with Panasonic, Mitsubishi, Dactronix and Philips.
Yesterday Stella Vista posted a 22 percent jump in headline earnings a share to 3.8c for the year to August.
Revenue grew 55 percent to R75.5 million. About 78 percent of the group's revenue is from its offshore operations. Net profit for the period rose 12 percent to R4.87 million.
Bacher said that prospects in the sports and commercial markets were good, as more local and international stadiums and sporting codes were adopting the use of electronic perimeter boards, as well as permanently fitting electronic big screens and scoreboards.
Stella Vista is also bidding for tenders in the UK to provide its products to four stadiums. It is planning to bid for contracts in Angola, the host of the 2010 African Cup of Nations.
The company already has operations in Nigeria, which will host the Fifa under-17 World Cup next year, and has a strong presence in the UK, Australia, Pakistan, the United Arab Emirates and India.
"Our products are well received and we have a presence in prestigious grounds," Bacher said.
The group invests 4 percent of its revenue in research and development (R&D;) to upgrade its software and products. The intensive R&D; drive was set to continue in the medium term, Bacher said.
"This is a very niche market … You have to update the technology [constantly] to ensure that the products get better," he added.
Stella Vista expects further opportunities in LED advertising boards. These are rotating electronic boards that are used for advertising sponsors at outdoor stadiums.
Stella Vista shares gained 19.05 percent in JSE trading yesterday to close at 25c.
(Source: busrep.co.za)
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