Troubled diversified technology group Altron has announced it will consolidate its head office, with subsidiaries Altech and Bytes — currently housed in a building in Woodmead, Johannesburg — moving to Altron’s head office in Parktown.
The move will allow for the centralisation of finance, facilities, IT, human resources and marketing shared services at an Altron level “to further reduce support service costs, improve functional alignment and enhance efficiencies”, the group said in a statement.
Altron CEO Robbie Venter described the relocation of the offices and the centralisation of shared services as part of the group’s transition into a “leaner, more agile business operation that has already seen it achieve significant cost savings”.
“Following the release of our interim financial results in October, we announced our intention to focus on three areas that would be crucial to our future success, namely business strategy and structure, cost reduction, and assets,” Venter said.
“I am pleased to report that we are seeing the benefits of our cost reduction activities and that the consolidation of head offices to date has been seamless with no impact on service delivery.
“The consolidation of our head offices facilitates more efficient and effective interactions at an executive level, while the centralisation of our shared services functions will lead to improved internal processes, closer interaction between businesses and improved cross-selling opportunities across our customer bases.”
Altron share price was last trading down by 1,7% at R4,70/share. The counter has lost almost three quarters of its value in the past 12 months on the back of poor performances from its Powertech and Altech units. — (c) 2015 NewsCentral Media