Allied Electronics Corporation Limited (Altron) on Wednesday (14 May) reported a\u00a014% rise in revenue from continued operations for the year ended February 2014, to R27.8 billion, from R24.5 billion.<\/p>\n
The listed technology group reported a 43% rise in diluted headline earnings per share, to 185 cents, from 129 cents in 2013.<\/p>\n
Earnings before interest, tax, depreciation and amortisation (ebitda) increased by 8% from R1.6 billion to R1.8 billion.<\/p>\n
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.<\/p>\n
The group raised its dividend to 80 cents, from 60 cents before.<\/p>\n
Altron TMT<\/strong><\/p>\n The creation of Altron TMT (Telecommunications, Multi-media and Information 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.<\/p>\n “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.<\/p>\n 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.<\/p>\n Altech increased revenue by 2% to R10.7 billion compared to the prior year, while normalised ebitda increased by 16% to R890 million.<\/p>\n Normalised headline earnings increased by 29% to R336 million.<\/p>\n Altech Autopage<\/strong><\/p>\n 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.<\/p>\n “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.<\/p>\n Altech Autopage achieved subscriber growth of just short of 5% at 1,037 million.<\/p>\n Altech Netstar<\/strong><\/p>\n 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.<\/p>\n “The business has launched several enhanced products into the market and the total subscriber base has grown to 580,503,” Altron said.<\/p>\n 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.<\/p>\n “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.”<\/p>\n “I am confident that we will be able to generate increased revenues and produce\u00a0 bottom-line growth on a sustainable basis,\u201d said Craig Venter, group executive: Altron TMT\/chief executive.<\/p>\n Altron sees stronger earnings<\/strong><\/a><\/p>\n Altron refinances debt from Altech acquisition<\/strong><\/a><\/p>\n
\nTechnology) in August 2013, followed Altron\u2019s purchase of all the remaining shares in Altech that it did not already own.<\/p>\nMore on Altron<\/h3>\n