A strong performance by Altron’s newly created TMT division, which includes subsidiaries Bytes and Altech, is expected to underpin a sharp rise in the group’s earnings in the year to 28 February 2014.
Altron informed shareholders on Thursday that it expects its headline earnings per share (Heps) for the full year to be between 35% and 45% higher than a year ago. Normalised Heps, which adjusts for various once-off costs, are likely to rise by between 45% and 55%.
“The TMT division, established following the successful acquisition of the Altech minorities in August 2013 and consisting of the Altech and Bytes businesses, has performed well, exceeding management’s expectations,” Altron told shareholders.
“Alhough the reorganisation process is ongoing, management is extremely pleased with the progress made to date.”
It said the division has secured several large tenders during the second six months of the financial year. This is “indicative of the exciting cross-sell/up-sell and collaboration opportunities that have arisen as a result of the integration of Altron TMT”.
Bytes continued to perform well despite its high customer base, Altron said. While gross margins at Bytes have “remained under pressure”, the top line has shown “robust growth”.
Altech has recovered strongly following the disposal at the end of the last financial year of its loss-making African operations, it added. Although top-line growth was “relatively muted”, profits “recovered strongly on pleasing performances out of its main operations and despite a number of significant once-off costs”.
The Powertech businesses also made a strong recovery, despite challenging economic conditions, Altron said.
Altron expects to publish its full-year results in mid-May. — (c) 2014 NewsCentral Media
