Altron reports 26% drop in revenue
JSE listed Allied Electronics Corporation (Altron) on Thursday reported a 26% drop in revenue for the year ended February 2017, to R19.7 billion.
Earnings before interest, tax, depreciation and amortisation (EBITDA) however, increased by 123% to R840 million, while headline earnings per share (HEPS) improved to a profit of 71 cents from the loss of 145 cents posted in the prior year.
Basic earnings per share (EPS) reduced to a loss of 54 cents from the loss of 259 cents reported in the prior year.
Altron said that while challenging trading conditions impacted performance, the group has made good progress in divesting of its non-core assets and has significantly reduced losses from these operations.
In particular, the group said it expects to complete a number of these disposals in the new financial year, with continued focus being placed on the disposal of Powertech Transformers and Altech Multimedia.
“Our core businesses delivered a credible performance in a challenging economic environment, with the telecommunications operations displaying growth on the back of strategic contract wins in the public sector space, most notably the City of Tshwane municipal broadband network, the eThekwini Municipality digital radio network for municipal public safety and utility services, and the Passenger Rail Agency of South Africa signaling and communication network,” said recently appointed CEO, Mteto Nyati.
Revenue from continuing operations declined by 3% to R13.9 billion from R14.4 billion in the prior year, while EBITDA increased by 7% from R888 million to R950 million.
Operating profit improved 4% to R728 million, Altron said.
Revenue for the non-core operations reduced to approximately R5.8 billion following the disposal of Altech Autopage at the end of the last financial year and the sale of Aberdare Cables with effect from 30 June 2016, Altron said.
The continuing operations comprise the information technology and telecommunications businesses of the group, while discontinued operations include the whole of Powertech, Altech Autopage, Altech Multimedia and Altech Node.
Looking ahead, Nyati said that Altron will continue to aggressively drive cost efficiencies; recruit, develop and retain top talent; build a trusted ICT brand; and accelerate growth.
“As we move into the new financial year there will be an increased focus on customer engagement which will be driven by collaboration between Altron businesses to identify synergies in order to move our business operating model from a point-solutions provider to an end-to-end solutions provider,” he said.
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