Strong economic confidence in SA is likely to continue in the year ahead, and Altron is going to benefit, says Altron CEO Robert Venter.
Commenting on yesterday`s release of the group`s results for the year to February, Venter says this confidence was being driven by declining interest rates, a stable inflationary environment and accelerating growth in gross domestic product.
"This has resulted in buoyant trading conditions," he says.
The group achieved revenue of R12.21 billion, up 22% from a previous R10.05 million. Operating income before goodwill amortisation/impairment and capital items rose by 35% to R968 million (2004: R718 million).
Pre-tax income came in at R844 million (R707 million), while attributable income was 32% up at R400 million (R304 million). Headline earnings rose by 17% from 138c a share to 161c a share and the group recorded a net asset value of 939c (907c) a share.
Subsidiary Altech accounted for 45% (41%) or revenue, while Powertech`s contribution was 31% (33%) and BTG`s 24% (26%).
Altech accounted for 51% of operating income, while Powertech contributed 25% and BTG 25%.
Venter says the increased revenue was a result of both strong organic growth and the acquisitions of NamITech, Altech Econet Wireless and CS Holdings.
He says Powertech reported a revenue increase of 12% to R3.7 billion despite the impact of a stronger rand on certain of its businesses and the resultant competition from foreign imports. Its operating income rose by 18% to R245 million.
Fintech experienced a slow start to the financial year, but in the second half record levels of new business were written. As a result, new business of R493 million written for the full year is up 55% on the prior year.
Altron`s listed subsidiaries, Altech and BTG, also recently released their full-year results.
"Based on recent positive developments in the sectors in which the group operates, the directors remain confident about the prospects of the group for the forthcoming financial year," Venter says. "With the strength of the balance sheet, the group is well positioned to take advantage of further investment opportunities."
Related stories:
Record revenue for Altech
Impairment hurts BTG
Share