JSE-listed Altron yesterday reported its best set of results in its 42-year history, delivering headline earnings growth of 51% for the full-year ended 28 February.
Altron operates through three subsidiaries. It has a 57.7% shareholding in Altech; a 57.6% shareholding in Bytes Technology Group and full shareholding in Powertech. Through these subsidiaries, the group has interests in telecommunications, multimedia, IT and power electronics.
Speaking to analysts yesterday afternoon, Altron chief executive Robbie Venter said the performance was the culmination of several years of hard planned strategy.
"We have had to make some difficult decisions at Powertech and are now seeing the benefits of these. We are capitalising on various sector opportunities and have plenty of decisions ahead of us. These, of course, have been supported by the buoyancy market," he said.
The company's full-year results saw revenue increasing by 23%, from R13.9 billion in the prior year to R17.1 billion. Segmental revenue performance saw Altech providing R6.7 billion, up 12% on 2006; Bytes 18%, up with R4 billion, and Powertech seeing a revenue increase of 43%, to R6.3 billion.
<B>Fast figures:</B>
Altron interim results to end-February
Year-on-year figures in brackets
Revenue: R17.1bn (R13.9bn)
Pre-tax profit: R1.57bn (R1bn)
Net profit: R1bn (R751m)
EPS: R2.87 (R1.76)
HEPS: R2.50 (R1.66)
Cash-on-hand: R1.6bn (R2.1bn)
Current assets: R6.1bn (R5.4bn)
Current liabilities: R3.3bn (R3.1bn)
Operating margin improvements boosted operating profit by 47%, from R1 billion last year to R1.53 billion. While down on last year's cash-on-hand of R2 billion, the company's current R1.6 billion is still a strong contributor to the balance sheet.
The company has declared a dividend of R1.18, up 51%, from 78c in the previous period.
While Altron is upbeat on its prospects for the coming year, it concedes that group growth cannot be maintained at the high levels reported in these results.
An analyst who asked to remain unnamed explains: "Altron provided a good set of results, but going forward it is going to be difficult to access the same kind of growth rates. In its next financials it will be operating off a far higher base than it has before now. I believe it's fairly valued at its current level."
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