“This division, established one year ago following the acquisition of the non-controlling interest in Altech, has performed well with many integration benefits already being realised,” said [DATA AEL:Altron].
“Significant cross sell successes have been achieved as a result of collaboration between the Altech and Bytes businesses such as the Gauteng Broadband Network tender and the launch of the new Altech Node smart home console which integrates the capabilities of eight different Altron group businesses.”
The South African telecommunications, multi-media, information technology and power electronics company further stated that its integration process is operating through five different work streams, and is expected to be completed by the end of the 2016 financial year.
During the first half of the year, Altron saw its revenue increase by six per cent to 14.2 billion rand from 13.4 billion rand for the six months ended 31 August 2013.
(WATCH VIDEO: Altron 2013 H1 revenue up 8%)
However, earnings before interest, tax, depreciation and amortisation (EBITDA) dropped five per cent from 826 million rand in 2013 to 784 million rand in 2014.
“The impact of the four week Numsa strike cost the Altron group an estimated 82 million rand at the EBITDA level. Capital items increased due to impairments, partially offset by the profit on disposal of our document solutions business in the UK and the Absa branded retail ATM assets,” the company said.
“Depreciation and amortisation has increased, reflecting the investment made in previous periods. Net finance costs increased as average borrowings have increased significantly due to the additional debt taken on to acquire the non-controlling interest in Altech, as well as a higher average borrowing cost.”
Profit before taxation decreased to 301 million rand in the 2014 interim period from 523 million rand in 2013 and basic earnings per share from total operations decreased to 58 cents from 82 cents.
(READ MORE: Altron ‘project focused’ in FY 2014)
“Management is pleased with the progress and successes achieved at Altron TMT – [which] will continue to focus on developing its own intellectual property through new convergence products, such as the recently launched Altech Node,” it said.
“While the medium term prospects for both Altron TMT and Altron Power are strong, the next six months are likely to be challenging. In particular the current challenges being experienced by public sector organisations in South Africa will affect Altron Power in the second half.”