Altron lifts earnings, ups dividend
Allied Electronics Corporation Limited (Altron) on Wednesday (14 May) reported a 14% rise in revenue from continued operations for the year ended February 2014, to R27.8 billion, from R24.5 billion.
The listed technology group reported a 43% rise in diluted headline earnings per share, to 185 cents, from 129 cents in 2013.
Earnings before interest, tax, depreciation and amortisation (ebitda) increased by 8% from R1.6 billion to R1.8 billion.
After taking into account the discontinued operations, profit for the year improved from a loss of R942 million in the prior year to a profit of R775 million, Altron said.
The group raised its dividend to 80 cents, from 60 cents before.
Altron TMT
The creation of Altron TMT (Telecommunications, Multi-media and Information
Technology) in August 2013, followed Altron’s purchase of all the remaining shares in Altech that it did not already own.
On a consolidated total operations level, Altron TMT – consisting of Altech and Bytes – increased revenue by 12% from R17.5 billion to R19.5 billion, and normalised ebitda by 16% from R1.3 billion to R1.5 billion.
“To date, reorganisation costs of about R23 million have been incurred with a sustainable annual cost savings benefit of approximately R87 million to be realised from the next reporting period onwards,” Altron said.
The integration process is operating through five different workstreams, and is expected to run through to the end of the 2016 financial year, it said.
Altech increased revenue by 2% to R10.7 billion compared to the prior year, while normalised ebitda increased by 16% to R890 million.
Normalised headline earnings increased by 29% to R336 million.
Altech Autopage
Revenue at Altech Autopage decreased by 9%, while ebitda increased by 3%, though a repeat of this level of performance is unlikely given margin pressure in the channel.
“The Average Revenue Per User (ARPU) has continued to decline, though at a slower rate. ARPUs on new subscribers are encouraging, while churn is being maintained at better than industry acceptable levels,” Altron said.
Altech Autopage achieved subscriber growth of just short of 5% at 1,037 million.
Altech Netstar
Altech Netstar increased revenue by 3% and remained the largest profit contributor with R294 million and a 9% improvement on the prior year as a result of a number of important contract wins in the fleet management side of the business.
“The business has launched several enhanced products into the market and the total subscriber base has grown to 580,503,” Altron said.
Looking ahead, Altron said that it is transforming from an investment holding company to an operational business through the pooling of talent, funds and businesses.
“As collaboration across the organisation gains momentum, fuelled by our focused, empowered and specialised business units, we are ideally positioned to take advantage of opportunities as they arise.”
“I am confident that we will be able to generate increased revenues and produce bottom-line growth on a sustainable basis,” said Craig Venter, group executive: Altron TMT/chief executive.
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