Altron Chief executive Mteto Nyati
Photo: Nokuthula Mbatha African News Agency (ANA)
Altron Chief executive Mteto Nyati Photo: Nokuthula Mbatha African News Agency (ANA)

Altron achieves double-digit growth Ebitda to R1.8bn for the year to end February

By Sandile Mchunu Time of article published May 14, 2020

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DURBAN - JSE-listed technology company Allied Electronics Corporation (Altron) achieved a double-digit growth in earnings before interest, tax, depreciation amortisation (Ebitda) to R1.8 billion for the year to end February, benefiting from its One Altron strategy implemented three years ago. 

Three years ago, the group set itself a target of doubling its Ebitda growth in five years. 

Chief executive Mteto Nyati said the group is on track to achieve that goal. 

"We have achieved 90 percent of that target in these three years and we still have two years to go. However, we are aware of the Covid-19 outbreak that will provide a challenge in achieving our goal but we are confident that we are still within reach," Nyati said. 

The group grew its revenue by 6 percent to R1.6bn while headline earnings per share (Heps) from continuing operations increased by 2 percent to 182 cents a share. 

Nyati added that in light on the current economic upheaval from the Covid-19 pandemic and uncertainty going forward, the company has decided that it would be prudent to preserve cash at this time and to declare a final dividend that is 40 percent less than would otherwise have been declared.

As a result the group declared a dividend of 55c, down by 24 percent compared to last year’s 72c.

The company created a five-year roadmap under One Altron strategy with the focus being to prioritise revenue growth, improve profitability, transform the customer experience and employee excellence.

"We have made good progress on One Altron’s goals. We have strengthened the group through the disposal of non-core assets, the rationalisation of operations and the execution of targeted acquisitions in high-growth areas," Nyati said. 

Looking ahead Nyati said Altron would focus on converting the cloud computing pipeline projects of Altron Karabina into revenue in South Africa, improving the profitability of Altron Nexus, integrating Ubusha into the group, and capitalising on the digital transformation agenda to meet customer needs through offering a One Altron solution.

"We will also assess prevailing market conditions to forge ahead with the unbundling of Bytes UK at the most opportune time," he said.  

BUSINESS REPORT ONLINE

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