Altech adds to downside trend
Shares in Allied Technologies Limited (Altech) were again off on Wednesday (15 August), closing 1.44% down to R47.80, and trending towards its one year low of R45.57 (11 July) on the JSE.
The group reached a one year best of R61.57 on 31 August 2011, but has since slipped close on R14, giving it a market cap of R5.06 billion.
The group reached a five year peak of R80 in October 2007, and has since slipped steadily from R78.90 in November 2009.
By close of play on Friday (17 August 2012), Altech’s shares rallied 44c to a week close of R48.24 on the JSE.
Results
In April, Altech recorded a pre-tax loss of R240 million for the year ended February 2012 – from a prior profit of R459 million – following losses in East and West Africa.
Revenue improved marginally to R9.97 billion, from R9.65 billion in 2011. Altech Autopage Cellular, with revenue of R6.069 billion, is still Altech’s major asset.
Operating profit before capital items declined 17.5% to R649 million from R787 million, while ebitda before capital items amounted to R919 million, a reduction of 14.3% from the prior year.
Despite the less than pleasing results, Altech still declared a dividend of 248 cents per share, from a dividend of 356 cents per share in 2011.
The annual dividend paid for the 2010 financial year was 339 cents per share, from 323 cents per share in 2009, and 288 cents per share in 2008 and 240 cents per share in 2007.
East and West Africa
“Results from our East and West African operations were disappointing. However, we remain positive that the remedial measures that we have put in place in East Africa will have a positive effect in the future,” said Craig Venter, Altech CEO in a statement.
On 14 February 2012 Altech noted that a decision was taken to sell Altech West Africa, and the operation was subsequently classified as held-for-sale.
Venter said at the group’s results presentation in April, that Altech was six to eight weeks away from disposing of its ailing West Africa operation.
He noted that two companies had expressed interest in the group and was confident that a deal would be concluded within eight weeks, “to alleviate further losses”.
Job done?
However, when BusinessTech enquired about the progress of the sale, Altech spokesperson, Shenanda Janse van Rensburg said the sale of Altech’s 75% shareholding in Altech West Africa was a matter that fell within its corporate activities.
Venter also previously stated that Altech’s subsidiary, vehicle tracking solutions provider, Altech Netstar, was exploring the possibility of an acquisition in Latin America. In April, the company head said that it was in advanced stages of a “major acquisition” in Latin America which would make Netstar the biggest vehicle tracking company in the world.
“At this stage Altech is making progress on both matters and will provide a full update at Altech’s Interim Results on 26 September 2012,” van Rensburg said.
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