Seven months after Altron bought out Altech's minority shareholders, in a R1.8 billion move, the bid - which resulted in the creation of Altron TMT - has started paying dividends.
Combining various assets from Altech and Bytes Technologies - Altron TMT - has aided the group in securing large deals, which boosted top line growth in the year to February, says CEO Robert Venter.
The listed company reported revenue 12% higher, to a record high of R27.8 billion, while normalised headline earnings per share increased 49%, to 206c. Venter notes, however, the 49% gain is unlikely to be repeated, because last year's figures included Altech's stakes in its troubled East and West Africa units, which have since been sold.
Venter anticipates good growth ahead, as Bytes and Altech continue to grow, and Powertech improves its fortunes. He says the merger between Bytes and Altech went smoother than he had anticipated, and the cross-selling approach has resulted in good deals being inked, such as the R1.2 billion Gauteng Broadband Network.
In addition, the group expects to pull R87 million of costs out of its base next year, a saving it expects to be repeated yearly moving ahead. Venter notes Altron has been through a year of transformation, with several other deals also being inked during the period.
"It has been a time of change for the Altron group. Significant projects were initiated during the year and we are very pleased with how they are unfolding and the benefits seen so far," says Venter.
Among the changes was Bytes' sale of its UK document solutions business, for R93 million, as the unit did not have a deal to provide services, just distribute, says Venter. The balance of the group's stake in NuPay was also acquired, while it sold 8.6% equity interest in Liquid Telecommunications for $55 million.
After the end of the period, Bytes bought identity management group Brand New Technologies for R49 million. Venter says Altron will continue to drive its combined TMT offerings to propel the business forward.
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