Electronics, telecommunications and IT holding company, Allied Electronics Corporation (Altron), has finished the year to February with a 28% increase in its headline earnings per share.
Operating income grew 21.6% to R763 million from R9.9 billion revenue, crossing the line 10% up on the comparable period. Of this revenue, R2.3 billion was attributable to exports and foreign operations, amounting to 24% of the total.
The group finished with R1.4 billion in cash and cash equivalents. Net asset value per share also grew to 725.1c, a jump of 18% year-on-year.
Looking at the breakdown of the operating divisions` performance, Altech accounted for 36.4% of the group`s revenue, while Powertech accounted for 37.8%. Bytes Technology Group (BTG) made up 23.7% of revenue and Fintech contributed 2.1%.
The year saw the group achieve a number of the restructuring objectives it had announced when its previous set of financial results were released. Non-core businesses were disposed of, and a rationalisation programme implemented throughout, but most notably within the Powertech and Bytes groups.
Altron bought back around 9% of its shares, and Fintech became a wholly owned subsidiary of Altron and was de-listed during the course of the year.
Despite its solid results, Altron admits it suffered as a result of the global slowdown in the telecommunications and IT markets, and management says it expects trading to remain difficult into the new financial year.
However, Altron points out that the first two months of trading into the new financial year are on target and the order books are looking "satisfactory".
Both BTG and Altech are on the acquisition trail, with Bytes in advanced negotiations to acquire a UK services company, which will contribute "significantly" to the IT group`s performance.
A dividend of 37c per share was declared.
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