Listed technology companies Altech and Altron, its parent, have warned shareholders that market conditions are not improving as quickly as they had hoped and this could undermine earnings.
For its part, Altech, which owns Autopage Cellular, Netstar and Kenya Data Networks, says it is “now clear that due to continuing adverse global and local economic conditions, as well as currency volatility, trading conditions … are being negatively affected”.
Altech, headed by CEO Craig Venter, says trading conditions the second six months of its 2011 financial year, which ends on 28 February, mean the group is unlikely to show any growth on the results of the previous financial year.
Altron, headed by Craig’s brother Robbie Venter, has warned of ongoing difficult trading conditions at Aberdale Cables, a subsidiary of the Powertech unit, as a result of the depressed state of the building and construction sector, including pricing pressure.
“It is evident from recent economic data that industries exposed to this key sector continue to face extremely challenging times with few signs of recovery being seen, particularly in the domestic residential market,” Altron says.
The rest of Powertech traded according to expectations.
Trading conditions at Bytes, Altron’s IT subsidiary, have not changed significantly and trading is in line with expectations. — Staff reporter, TechCentral
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