Altech lifts profits

Johannesburg, 24 Apr 2008

Allied Technologies` (Altech`s) results for the year ended 29 February show an increased revenue of 22% to R8.2 billion, up from R6.7 billion.

According to CEO Craig Venter, headline earnings per share improved by 23%, to 551c, and operating profit scaled up 17%, to R664 million. "Altech has remained faithful to its vision through the 2007/8 reporting period."

The JSE-listed company showed an increased net asset value per share from 1 863c to 2 026c, with cash balances of R1 591 million and return on shareholders` equity increasing from 22.7% to 25.4%. A dividend of 288c per share was declared, representing an increase of 20%.

Venter attributes revenue growth to leveraging local market positions, growing annuity revenue, building an Internet Protocol (IP) delivery system and products as a foundation for expansion into Africa, and exploiting demand in India.

"Our aim is to achieve strategic positions in our chosen markets around the globe, while focusing on the development and ownership of intellectual property rights," he notes.

Division break down

Altech Autopage Cellular, its service provider business, increased its number of new connections by over 14% in 2007. Venter says the growth should see the company exceed its interim target of one million subscribers in the next few months. "The average revenue per user had also improved compared with the previous financial year."

He says despite a slowdown in new car sales, increased interest rates and the application of the National Credit Act, growth in the vehicle tracking business, Altech Netstar, has been good.

"Netstar Fleet Management division experienced a remarkable growth of 70% in the commercial fleets and vehicles subscriber market due to the introduction of new technology solutions."

During 2007, Altech Stream commissioned its trial WiMax network in Gauteng. Venter says the WiMax 802 standard is widely expected to emerge as the dominant wireless IP delivery technology. He is confident this initiative will exploit, to the full, the opportunities presented by media convergence over broadband delivery systems.