JSE-listed Altech is looking into the possibility of bringing an international broadband solution to SA.
Altron, which is a majority stakeholder in the technology group, says the project would be a greenfields development. CFO Diane Radley says the company could announce it before year-end, should it decide to go ahead.
Altron yesterday announced its interim results, reporting revenue of R8.3 billion, a 20% increase on the same period last year. The company has R1.5 billion in cash and equivalents, most of which is housed at Altech level.
CEO Robert Venter told analysts and media at the company`s results presentation yesterday that the company was comfortable with its cash holdings. He said the company would rather fund growth off the balance sheet rather than through debt.
The company, he said, is not afraid to spend its cash, just cautious about its choices. He mentioned the broadband project as one area in which the company could invest.
Radley said the project would be in conjunction with an, as yet, unnamed international partner. The partner is running a similar broadband offering overseas, he said.
"It`s small in our lives at this point. It`s not going to revolutionise Altech over the next 18 months."
The project, which is at a very early stage, may not require a feasibility study as the company might leapfrog this stage and look at rolling it out incrementally.
Altech, 57.7%-owned by Altron, has several business units in the IT and telecoms sector, including Autopage, Supercall, Card Solutions and NamITech.
It recently reported revenue growth of 13% in the six months to end-August. Revenue increased to R3.3 billion, from R2.9 billion the previous year, while operating profit was up by 16%, to R289 million.
CEO Craig Venter said the company`s "strong balance sheet, coupled with cash reserves of well over R1 billion, strongly position the group to take advantage of acquisitions, share buybacks and related activities".
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