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Altron TMT looks to deals to boost growth

Nicola Mawson
By Nicola Mawson, Contributor.
Johannesburg, 15 May 2015
Altron TMT has put the building blocks in place to grow, says CEO Craig Venter.
Altron TMT has put the building blocks in place to grow, says CEO Craig Venter.

Joint ventures, key acquisitions, disposals, international expansion and cost savings are key focus areas of Altron TMT's growth strategy as it seeks to grow its top line.

During the year to February, the group, a subsidiary of the listed Altron group, reported flat revenue of R19.4 billion, and headline earnings declined 19% to R461 million. It was beset by several problems during the year, including order delays, slow uptake of its Node device, and the month-long metalworkers strike.

Altron TMT, which mostly comprises the old Altech and Bytes Technology Group, reported earnings before interest, tax, depreciation and amortisation (Ebitda) of R1.2 billion. Although this was a 16% decline on the previous year, the unit still accounted for the bulk of Altron's Ebitda, which totalled R1.4 billion. Overall, Altron's revenue was flat at R27.6 billion.

Craig Venter, Altron TMT CEO, says the company has been streamlined over the past 12 months and non-core units, such as LaserCom and Bytes UK Document Solutions, have been sold.

"I am confident we are on the right track with regard to our growth strategy, particularly with respect to accessing new markets and that we are fully geared to take advantage of opportunities as and when they arise," he notes.

Buying up

During the year, Bytes People Solutions bought contact centre business Inter-Active Technologies, while Altech Netstar acquired FleetPro.

Altron TMT's healthcare industry, in which MediSwitch and Med-e-Mass play, saw the acquisition of Health-Soft, a provider of electronic solutions, such as e-scripting, designed to address the day-to-day needs of healthcare delivery.

"In terms of accessing new markets and international expansion, we have seen a number of moves on this front," says Venter.

Recently, Altech Netstar bought Pinpoint Communications, an Australian business with more than 15 years of experience in the development of software and hardware for the collection and distribution of mobile data. The company says this deal "provides an important foothold in the Australian market".

In addition, Altron TMT is pursuing a strategic alliance to boost Node's penetration in the market, says Venter.

During Altron's presentation this week, Altron CEO Robert Venter said the company was in talks with a "substantial" player in the market to partner with to get a new channel to market. He added this could include a potential sale.

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