DURBAN – JSE-listed Allied Electronics Corporation (Altron) has set itself an ambitious target of R100 million in earnings before interest, tax, depreciation and amortisation (Ebitda) in its Altron Karabina subsidiary over the next three years.
Chief executive Mteto Nyati said the integration of Altron Karabina, which was acquired in September last year, had been slower than expected but remained strategic, given its capabilities in the fast-growing cloud and data analytics environment.
“We want to replicate in Altron Karabina in what we have done in Bytes UK, where we achieved a strong Ebitda growth of 46 percent in the half year results,” Nyati said. “We want to grow this R40m Ebitda to R100m in the next three years.”
Nyati said Altron Karabina was recently awarded Microsoft Licencing Solutions Provider (LSP) status following a rigorous tender adjudication process. “The LSP contract is similar to the long-standing partnership which Altron has with Microsoft through Altron Bytes UK,” he said. “Accordingly, management is confident that Altron Karabina will be able to leverage off this existing relationship and emulate the successful UK experiences in the SA marketplace as well.”
Nyati said Altron Karabina aimed to be one of the leading Microsoft licensing solutions partners. In the six months to end August, Altron Karabina added R86m in revenue to Altron.