Altron earnings rise
The group reported a 16% rise in diluted adjusted HEPS to 179 cents for the period from 154 cents a year ago. Adjusted HEPS reflect the removal of the effect of the amortisation of intangibles arising from the group’s recent and prior acquisitions.
Revenue was 19% higher at 13.2 billion rand, while operating profit rose 25% to 1.1 billion rand reflecting the results of both organic and acquisition related growth. Profit for the period was 37% higher at 800 million rand.
The group said despite tightening economic conditions, the period was characterised by good revenue and profit growth in the Altech and Powertech operations with Altech recording a pleasing increase in operating margin.
The Bytes operations also achieved good revenue growth, but experienced margin pressure primarily in the Bytes Systems Integration business.
A key development in the Telecommunications sector during the period under review was the ruling of the Pretoria High Court in favour of Altech Autopage Cellular permitting the company to convert its value added network service licence (VANS) into an individual electronic communications network service licence (I-ECNS).
Subsequent to the end of the reporting period, the Minister of Communications has brought an application to appeal the ruling, which Altech will be opposing.
Looking ahead the group said South Africa’s core infrastructural spend programme, which remains on track, will continue to benefit the group.
However, as a result of the recent slow down in the building and construction sector, particularly the residential segment of the market, certain key businesses within the Powertech group are being affected.
This, combined with the global financial market turmoil, as well as potential pressures locally, has created further uncertainty around future trading conditions.
Consequently, the group has in recent months shifted its focus to one of consolidation. The past 12 months has seen the group concluding substantial acquisitions and it will use the next six months to continue to extract the anticipated synergies and returns.
"With a focus on cost control and working capital management we will look to build on the solid foundation established over the prior years," it said.
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