Altron posts big gain after Altech buyout

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Johannesburg - Allied Electronics (Altron) lifted headline earnings a share by 42 percent year on year to R1.88 for the year to February, it said yesterday.

In addition, normalised headline earnings a share increased by 49 percent to R2.06, while return on equity was 15.2 percent, the audited annual results showed. Revenue from continuing operations increased by 14 percent to R27.8 billion compared with R24.5bn in the prior period.

The Altron Telecommunications, Multimedia and Information Technology (Altron TMT) subsidiary increased revenue by 12 percent to R19.5bn.

Altron TMT group executive Craig Venter said normalised headline earnings improved by 26 percent to R646 million at the unit formed from the merger of delisted Altech and Bytes.

Commenting on the performance of the multibillion-rand entity, Venter said Altech and Bytes had contributed significantly to Altron TMT’s results since the establishment of the merged subsidiary in August last year.

“We have seen significant successes with new customers coming on board and the award of large tenders such as the R1.2bn Gauteng broadband network contract.

“We are certainly beginning to reap the benefits of the collective power of these two organisations and have produced a set of results that are significantly better than what we had originally anticipated.”

Altech, which was bought out and delisted from the JSE last year, increased revenue by 2 percent to R10.7bn.

Venter said, Altech’s group operating profit stood at R647m, an increase of 18 percent from the previous year.

Altech Netstar increased revenue by 3 percent with an operating profit contribution of R294m making it the largest “profit contributor” to Altron TMT, Venter added.

“In the face of tough trading conditions, Altech’s and Bytes’s core businesses performed exceptionally well for the year ended February 2014, displaying stability and profitable growth as we continued to focus on an improvement in growth in our customer base; the quality and breadth of our products and services; and our financial fundamentals of working capital, capex and delivering operating profits,” he explained.

Altron’s shares gained 2.62 percent to R25.50.


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