JSE-listed Allied Technologies (Altech), has delivered better than expected full-year results, boosting headline earnings by 45.5%.
CEO Craig Venter says the company is especially pleased to be able to announce such results during a time of general global and local economic challenges.
The group has shown strong growth for the past five years, with the latest growth rate the best yet.
Venter notes that return on equity of 34.9% has been realised.
Revenue for the year to 28 February 2001 rose 20.7% to R3.69 billion from R3.06 billion in the year to 29 February 2000. Operating income increased 32% to R283.43 million (2000: R215.54 million).
After-tax income increased to R219.48 million (R188.44 million), while attributable earnings rose 30% to R207.94 million (R159.84 million).
Headline earnings per share were boosted to 223.1c from 153.3c previously.
An ordinary dividend of 80c and a special dividend of 20c per share were declared.
Venter says the Altech group is to be restructured into four focused divisions: telecommunications, multimedia, technology and electronics.
"Each of these divisions form part of the new economy and offer superb opportunities for growth," he adds.
The new structure will entail reorganising certain businesses and the possible disposal of non-core activities. About 615 jobs have been cut over the past year as a result of tightening operations and integrating acquisitions.
Venter says the new structure has been designed to meet the challenges in the rapidly changing markets in which the group operates and ensure its continued leadership.
The group is planning to make global acquisitions and mergers, with an announcement expected soon. The group ended its year with net cash and cash equivalents of R527 million.
The share closed at R21.90 on the JSE yesterday, up 40c or 1.86% on Friday`s close. It was trading at R14.15 a year ago.
An analyst says the results were better than expected, and notes that Venter is predicting further solid growth for the coming year, which should boost shareholder sentiment. However, he cautions that the share, like others on the JSE, is still subject to pressures from Nasdaq.
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