Altron has reported a 13% decline in headline earnings per share (Heps) from continuing operations, to 47c, on revenue that fell 10% to R6.8bn. Bytes UK was a standout performer.
The technology group said that interim results for the six months to end-August 2017 showed Heps from total operations of 40c, an improvement of 29% on last year’s 31c.
The numbers were negatively affected by a strong rand during the reporting period, especially in relation to the British pound.
Altron, which has spent the past few years shedding its legacy industrial assets, is refocusing itself exclusively as an ICT player.
“The group’s continuing operations have delivered results in line with expectations, despite the difficult local economy, a strengthening currency, and the once-off costs associated with the various restructuring processes,” Altron said in a statement to shareholders.
Normalised and constant currency headline earnings increased by 27%, from R165m to R209m. Normalised and constant currency headline earnings per share grew by 16% to 57c.
Altron, which since April has been led by someone outside the Venter family for the first time in its more than 50-year history — in the form of former MTN South Africa CEO Mteto Nyati — said discontinued operations showed marked improvement over last year’s interim results.
Reduced costs
The main improvement came from Altech Multimedia, which performed well operationally. The results were further assisted by the reduced costs associated with the closure of Altech Autopage.
“The substantial improvements in the discontinued operations, with the loss from these operations again reducing significantly from R224m to R95m, are a combination of improved operational performance, progress on the disposals and the resultant decline in the interest expense.”
The Bytes UK operations were a highlight of the numbers. This operation grew revenue by 25% in local currency and earnings before interest, tax, depreciation and amortisation by 21%.
“The acquisition of the Blenheim Group and its largest subsidiary Phoenix Software, as announced … on 29 September 2017, will add further scale to Bytes UK, making it a significant player in the UK software market and operating in a space with good revenue growth prospects,” Altron said.
The group warned that conditions “remain challenging” in South Africa, though it said it “remains confident” that its continuing operations will generate growth. — © 2017 NewsCentral Media