Altech, the JSE-listed telecommunications, multimedia and technology (TMT) group, has overcome tough market conditions to post strong results for the year to end-February.
<B>Salient figures</B>
Altech results for the year to 28 February 2002
Previous year`s figures in parentheses:
Revenue: R3.6b (R3.69b)
Operating income: R357.29m (R284.43m)
Income before tax: R353.74m (R304.57m)
Income after tax: R220.38m (R222.8m)
Attributable earnings: R242.25m (R205.25m)
HEPS: 268.1c (220.6c)
Dividend per share: 100c (80c)
Current assets: R1.32b (R1.3b)
Cash and cash equivalents: R597.72m (R527m)
Current liabilities: R777.41m (R739.18m)
NAV per share: 872c (741c)
Cash generated by operations: R343.87m (R316.66m)
While revenue remained constant, the group increased its operating income by 25.6%.
CEO Craig Venter says considerable work was carried out on acquisition search and investigation, particularly in Australasia and the UK.
"Certain prospects reached an advanced stage of negotiation but were ultimately turned down due to declining future profitability which emerged during the due diligence process," he says.
"We remain committed to securing acquisitions within the TMT sector, particularly in the global context, which meet our stringent requirements relating to risk and sustainable earnings growth."
Altech has no shortage of cash to finance its acquisition plans. The balance sheet shows cash and cash equivalents of R597.72 million at year-end.
Venter says cash received from the planned sale of its 40% stake in Alcatel Altech Telecoms to France`s Alcatel CIT will be added to the existing cash resources and used to make acquisitions.
Autopage Cellular performed above expectations and increased its base to more than 460 000 subscribers. Netstar expanded its base to about 160 000 vehicles and recovered 2 835 stolen and hijacked vehicles worth about R354 million.
UEC Technologies showed good profit and market share growth, while the start-up MediaVerge has already turned profitable. Alcom Radio Distributors exceeded the previous year`s sales.
Arrow Altech Distribution gained market share despite a global recession in the industrial electronics market, and is expected to gain further market share this year.
Venter says systems integrator and software house Isis experienced a good financial year, particularly in the second half.
However, Keops Isis Industrial Information Systems experienced tough conditions and has restructured its operations.
Venter says the group`s increased focus on TMT convergence, "substantial and sound" acquisitions, together with continuing globalisation, will remain its core strategies.
A dividend of 100c per share has been proposed. The Altech share was trading at 2 300c on the JSE this morning, up 100c or 4.5% from yesterday`s close.
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