Non-core assets drags down Altron interim profit by 3%

Union Diagnostics

Allied Electronics corporation Limited, Altron in its financial report for first quarter 2017 posted 3% fall in Revenue to ZAR13.9 billion compared to ZAR14.4 billion recorded in the financial year 2016.

Its operating profit before capital items increased by 4% to ZAR728 million in contrast to ZAR702 million.

The company’s profit for the year from continuing operations jumped by 15% to ZAR415 million against ZAR360 million, while headline earnings per share from continuing operations fell by 10% to 114 cents per share compared to 126 cents per share recorded in 2016.

The Altron group said it has made good progress in repositioning itself in line with its stated strategy and as a result has significantly reduced the group’s debt to sustainable levels. The disposal of the remaining non-core assets remains a priority in order to release further capital to strengthen the balance sheet and enable further investment in the core assets.

The capital injection of ZAR400 million by Altron’s new strategic partner, Value Capital Partners, provides Altron with the added flexibility to implement its growth strategy in its core businesses, exit the non-core manufacturing assets, and create capacity for acquisitive growth. Under the new Chief Executive, Mr Mteto Nyati, a full review of the strategy for growth of the core businesses is currently underway and will be communicated to shareholders when appropriate.

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