Altech has declared a 174c per share dividend in a year that saw its revenue grow to more than R5.5 billion.
The 34% growth in revenue for the year to February, from R4.14 million for the previous year, resulted from a combination of acquisitions and organic growth.
During the year the NamITech acquisition was integrated into the group and Altech also acquired 50% of Econet Wireless Global.
Operating income before goodwill amortisation and capital items rose by 48% from R333 million to R493 million, while pre-tax income was up 11% from R451 million to R499 million. Headline earnings per share were up 12% from 302c to 339c while basic earnings were flat at 295c (2004: 297c) a share.
The bulk of the revenue came from the telecommunications division (R3.91 billion against R3.14 billion the previous year). The multimedia and electronics divisions saw their revenue slip from R886 million to R784 million, while the IT division`s revenue soared from R241 million to R929 million.
Altech CEO Craig Venter says Econet Wireless Group, since renamed Altech Econet Wireless, had already made a positive contribution to earnings within the first two months of the acquisition.
Good performances were also achieved at Autopage Cellular, Netstar, NamITech, Isis, Alcom Matomo and Alcom Radio Distributors and Altech Card Solutions.
Venter says UEC Multi-Media experienced pressure on its results because of the strength of the rand against the dollar. "This was despite an 8% increase in unit volumes and an increase in US dollar turnover of 18% on the previous year," he adds.
A re-engineering and process redesign has been implemented at the company to protect it from a strengthening rand and Venter says benefits have already been experienced.
The IT division`s record results are mainly owing to strong performances from NamITech and Isis.
"NamITech, which started operating as a subsidiary of Altech during the year, was successfully integrated into the group and comfortably reached its growth targets and expectations," Venter says.
He adds that he is confident the group will continue to show real growth in the coming financial year.
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