Altron's second half-year will be more conservative and risk-averse, in preparation for the impact of the global economic slowdown.
"It would be naive to believe local companies will not be affected by the global economic slowdown," said CEO Robert Venter, speaking at Altron's interim results for the six months ended 31 August.
He said that, after achieving a strong half-year, the company will focus on consolidating its first-half acquisitions. "Over the last 18 months, there was value in buying while the market was challenged. We capitalised on the lower prices the current market opportunities provided us."
However, Venter noted the company will consolidate those investments and focus more on internal operations. "Trading will become pressured and the exchange rate will impact all local businesses."
Venter said the decision to consolidate will bring the company through what may be hard times.
The company's interims were strong, with a 19% increase in revenue, to R13.2 billion. Venter said both EBITDA and operating margins were especially good. However, Venter said Bytes Technologies felt some margin pressure.
The company predicts a solid second half and expects better performance from Bytes over the period.
While the company's Powertech division drove the first-half results, Venter explained there may be a change in the second half. "We are expecting that Powertech will be a challenge for the next six months."
Altron's Powertech business plays heavily in the public sector, with almost 50% of its revenue generated through infrastructure provided to government-related business. "It does seem to be in a reasonably strong position, but, with the economy as it is, there is no way to know the affect."
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