Better than expected performances from several business units helped Allied Technologies (Altech) grow its interim revenue by 35% to R2.65 billion.
Operating income for the six months to August soared by 57% to R249 million from R159 million previously, while pre-tax income rose by 6% from R154 million to R163 million.
The group achieved headline earnings of 158c a share, up 10% on the 144c for the year-earlier period.
CEO Craig Venter says the balance sheet is strong, with cash and equivalents of R722 million after payments were made for the NamITech (R543 million) acquisition and a share buyback (R247 million).
Venter says that in Altech`s telecommunications division, Autopage Cellular, performed well ahead of expectations, increasing its subscriber base by more than 30 000 to over 615 000. An even greater higher gross connection performance is expected in the second half of the financial year due to peak trading between October and December.
"An increasingly deregulated telecommunications market has opened voice over Internet Protocol as well as other concessions, all of which have created exciting opportunities for the Altech group and, in particular, Autopage Cellular."
In the multimedia and electronics division, UEC Technologies achieved what Venter calls an "acceptable" performance, despite further strengthening of the rand. Unit sales at UEC were up by 38%, while sales were up 44% in rand terms and 71% in dollar terms.
In the IT division, recently acquired NamITech exceeded expectations.
"NamITech has been successful in securing pilot Europay/MasterCard/Visa (EMV) roll-outs with all major South African banks, except one. This clearly bodes well for the future of NamITech`s financial services division.
"I can also announce that NamITech is in the process of establishing an initial prepaid voucher facility in Nigeria after being awarded a licence to manufacture vouchers in that country by the Nigerian Communications Commission."
He says that with recent acquisitions, orders on hand and an increasing flow of annuity income, he is confident real growth will be achieved for the second half.
Share
