JSE-listed Allied Electronics Corporation this morning reported its results for the six months to August.
It said revenue declined marginally by 2%, to R11.5 billion, as poor results from Altech and Powertech units slowed growth.
Earnings before interest, tax, depreciation and amortisation (EBITDA) decreased 6%, to R932 million, against the first six months of last year, it said in a statement.
CEO Robert Venter says: “We saw an excellent performance from the Bytes group, with Powertech and Altech experiencing some issues in certain of their businesses, resulting in a muted overall performance from these two groups.”
Venter adds the company's diverse portfolio “provides a certain amount of resilience during the volatile market conditions that we are currently experiencing”.
“Altron will focus on growing revenue, while leveraging off the low cost base that has been achieved over the last few years.” Venter says the company will focus on organic growth and more acquisitions.
“Special attention will also be paid to getting the currently underperforming businesses back on track.”
Star performer
Bytes reported good results from virtually all operations, as EBITDA improved 19%, to R246 million, despite revenue decreasing 6%, to just under R3 billion.
“Bytes Systems Integration and Bytes Managed Solutions were the star performers, although almost all of the businesses within the Bytes group showed good profitable growth,” says Venter.
security software distributor Security Partnerships towards the end of the period. “The Security Partnerships acquisition helps us to diversify the Bytes UK business, which historically focused principally on Xerox distribution and Microsoft licensing,” says Venter.
Tough going
Altech's revenue increased marginally 1%, to R4.8 billion, but EBITDA slumped 10% to R456 million as the group's East Africa results weighed on its results. Altech Autopage Cellular, Altech Netstar and Arrow Altech Distribution performed well.
The unit, which accounts for the bulk of Altron's revenue, acquired Eyenza Mobile Money SetOne after the end of the period. Both companies will start contributing to Altech's bottom line in the second half of the year.
Powertech's transformer, batteries and system integrators businesses performed “exceptionally” well, says Altron.
However, the unit's overall performance was impacted by the cable business, which was negatively influenced by difficult market conditions in Iberia, the continued subdued state of the building and construction industry and the two-week metalworkers strike in July.
Powertech's revenue declined marginally by 2%, to R3.7 billion, yet EBITDA dropped 13%, to R233 million.
“Powertech has done extensive analysis on costs and efficiency over the last few years and this is set to continue for the remaining six months of the financial year. The cable business in particular will benefit from these efficiencies once the building and construction sector recovers,” says Venter.
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