Altron grows and grows

Johannesburg, 10 Oct 2007

JSE-listed Altron has continued to deliver strong figures in its interim financial results to the end of August.

Yesterday, the group revealed it had increased revenue by 32%, to R11 billion. It said this followed exceptional growth in its wholly-owned Powertech business and satisfactory performances from partly-owned companies Altech and Bytes.

However, Altron chief executive Robert Venter warned that its high growth rate over previous periods could become difficult to sustain.

"Higher bases mean that growth percentages will come down a little bit. We don`t expect to stop increasing our revenue, it`s the differences from period to period which may not be as high as they were in the past," he explained.

Presenting the group`s 10-year track record, Venter pointed out that the company had achieved a 14.1% compound annual growth rate in revenue. However, year-on-year revenue growth had been 23% in 2007, 14% in 2006 and 22% in 2005.

Nevertheless, the group`s various interests kept its prospects stable, he said.

"The three companies - Powertech, Bytes and Altron - all work in cycles. So far these cycles have worked to our benefit. When one company has a slower performance, the other two generally have stronger performance," he explained.

Venter said the company would look at further acquisitions to fuel its growth.

"We have completed some significant deals in the period, have others awaiting various approvals and more awaiting finalisation. These will add to our organic prospects. We have no desire to conquer the world, but there are still many niche opportunities both within and outside SA`s borders which we see promise in."

Operating profit for the six months ended 31 August climbed 27%, to R902 million. Headline earnings per share increased 38%, from R1.24 in August 2006, to R1.71. The company has cash of R1.76 billion spread across its subsidiaries.

Venter declined to explain the cautionary notices simultaneously renewed by Altron, Altech and Bytes last month. However, he said more information would be released fairly soon.