Altron`s listed technology subsidiary Allied Technologies (Altech) has turned in solid figures for the six months to August and is showing every sign of continued growth with new business signed and more in the pipeline for the remainder of the year.
Headline earnings per share is 24% up for the interim period at 113.6c. Operating income of R150 million was achieved on increased revenue of R1.9 billion.
Looking at the breakdown of the group`s performance, telecommunications still accounted for the majority of the revenue for the period (67%). However, Altech`s multimedia and electronics division contributed 47% of operating income from just 32% of the revenue.
Altech`s multimedia company UEC achieved this through its contracts with both Multichoice SA as well as Multichoice Greece. The digital set-top box company is contracted to supply both divisions going forward and has supplied the interactive application for M-Net`s Big Brother reality TV programme.
Netstar vehicle tracking and Autopage cellular have both performed well in the telecoms division during the period and Autopage appears to be operating more comfortably since its de-listing from the JSE.
Altech will also be looking to benefit from Netstar`s latest deal with Proton, a Malaysian car manufacturer, and will earn royalties from the new partnership.
The computer products division has secured the exclusive distribution rights for LG Electronics` range of networking products to complement its existing product portfolio. Altech management says the full benefits of this agreement will be seen in the next reporting period.
Altech Card Solutions recently concluded a contract to supply another major financial institution with terminals and software solutions. This will increase its market share within the acquiring business to 50%, supplying three of the five major acquiring banks.
Altech management says it is examining further expansion and is currently evaluating 24 possibilities, both locally and abroad, but says it will proceed with caution, judging acquisitions on low risk and earnings potential criteria.
The group finished the year with cash and cash equivalents of R546 million, well up from the comparable period and greater than that reported at the end of its last full financial year.
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