Despite the ongoing challenging economy, listed technology group Altron says it is on track to deliver on its goal of doubling earnings by 2022.
The group has published its interim results for the six months ended August 2019, showing revenue from continuing operations climbed 8% to R8.53 billion.
Earnings before interest, tax, depreciation and amortisation from continuing operations increased by 19% to R803 million, while headline earnings per share (HEPS) increased by 4% to 73 cents.
Profit from continuing operations was up to R273 million, from R269 million before.
The group declared an interim dividend of 29 cents per share.
“We continue to stay focused on delivering innovation that matters through technology solutions and services that deliver impact with tangible results for businesses and have positive societal impact,” it said.
“To this end, we secured key wins in the financial half-year under review. These included, amongst others, the partnership agreement entered into between Toyota, Vodacom and Netstar. Furthermore, Altron Karabina, has recently been awarded Licencing Solutions Provider status by Microsoft.
Altron said it remains on track to double ebitda by 2022.
The group acknowledged that it experienced challenges in some of its operations – specifically with Altron Nexus which lost the City of Tshwane Municipal Broadband Network contract.
In addition, internal investigations following the precautionary suspension of key executives remains ongoing, it said.
“Altron Nexus also experienced increased working capital demands as a result of large infrastructure projects and increased business activity.”
The integration of Altron Karabina, which was acquired during FY19, was also slower than expected.
“To improve market comprehension of our solutions and services, we have again grouped our operations into the following segments, namely Digital Transformation, Healthtech/Fintech, Smart IoT and Managed Services,” it said.
Altron noted that while the discontinued operations were included in the FY19 interim results, the process of disposing of non-core assets has largely been concluded and accordingly, these results are presented with discontinued operations excluded.
“Continuing operations’ results provide stakeholders a more appropriate measure of the core sustainable earnings of Altron,” it said.
Including discontinued operations, profits were down to R267 million (from R289 million before), with the total comprehensive income for the period also down at R278 million from R466 million before.
In mid-morning trade on the JSE, Altron’s shares declined 1.43%, to R26.87 a share.
The group’s shares are are up 58% year-to-date, however.