JSE-listed Altron`s revenue rose 15% to R11.4 billion for the year to 28 February, despite global recessionary market conditions, rand strength and downturns in the IT and telecoms sectors.
Operating income rose by 19.5% to R911.62 million (2002: R762.88 million) and attributable earnings increased by 50.8% to R464.45 million (R308.01 million). Headline earnings per share improved by 15.6% to 149.4c (129.2c).
CE Robert Venter says the group incurred net currency losses of R38 million, compared with previous-year gains of R115 million.
Headline earnings include an amount of R33.7 million arising from the liquidation of the Altron Benefit Fund.
Excluding the foreign exchange effects and the income from the benefit fund from both 2002 and 2003, operating earnings from underlying operations would have increased by 35%.
Subsidiaries Altech and Bytes Technology Group both recorded strong performances.
However, the global downturn in the telecoms sector saw a significantly reduced contribution from Aberdare Cables` copper and fibre optic cable manufacturing businesses. Venter says this was offset by strong growth in Altech`s wireless telecoms businesses.
The telecoms businesses contributed 34% (2002: 35%) of overall revenue and 25% (37%) of operating income.
<B>Salient figures</B>
Altron results for the year to 28 February 2003.
Previous year`s figures in parentheses, move in square brackets:
Revenue: R11.4b (R9.9b) [+15.1%]
Gross operating income: R876.45m (R647.66m) [+35.3%]
Operating income: R911.621 (R762.88m) [+19.5%]
Income before tax: R1.17b (R745.69m) [+56.4%]
Attributable earnings: R464.35m (R308.01m) [+50.8%]
Basic EPS: 172.5c (111.9c) [+54.1%]
HEPS: 149.4c (129.2c) [15.6%]
Dividend per share: 43c (37c)
Current assets: R4.45b (R4.68b)
Net cash and equivalents: R1.51b (R1.44b)
Current liabilities: R2.22b (R2.46b)
NAV per share: 837c (725.9c)
Significant downsizing and rationalisation programmes were implemented in the telecoms businesses during the period and Venter says further rationalisation is continuing.
The electronics and multimedia sector achieved a 9% increase in revenue and now contributes 37% (39%) of total revenue and 41% (34%) of operating income.
The IT businesses contributed 29% (26%) of group revenue and 24% (18%) of operating income. All the businesses in this area improved their performance during the year.
"Market conditions in the telecommunications and IT sectors are not likely to show improvement in the short- to medium-term, especially with regard to the international market in which we operate," Venter says.
"However, the local economy should remain buoyant for many of our products should the widely predicted reduction in interest rates materialise. If the rand remains at current levels, the rate of growth in profits in the first half of the year for our group will possibly be lower than that achieved in the first half of the previous year."
Share
