| Tue 30 Sep 2008, 9:25 | | ALT - Allied Technologies Limited - Press release: Altech profit UP 34% |
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ALT - Allied Technologies Limited - Press release: Altech profit UP 34%
ALLIED TECHNOLOGIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1946/020415/06)
Share code: ALT
ISIN: ZAE000015251
PRESS RELEASE: ALTECH PROFIT UP 34%
Allied Technologies Limited (Altech) today announced remarkable half-year
results for the period ended 31 August 2008. Revenue increased by 13% to R4.5
billion, the company`s operating profit increased by 34% to R409 million and
headline earnings per share was up by 19% to 261 cents. Altech Chief Executive
Officer, Craig Venter commented that the company`s continued strong balance
sheet and net asset value of 1 974 cents underpinned the group`s expansion
strategy, with notable progress in several areas having been made during the
half-year, particularly in Africa.
Venter commented "One of the key developments of the period was the ruling by
the Pretoria High Court on the 29th of August, in favour of Altech entitling the
group to have its existing valued-added network services (VANS) licence
converted into an individual electronic communications network service (I-ECNS)
licence". Venter went on to say, "Although the Minister of Communications has
subsequently brought an application for leave to appeal the decision, which
Altech will be opposing, Altech feels not only vindicated to have been pioneers
in attempting to break competitive ground in what has long been a closed playing
field, but is also confident that the ruling will be upheld".
Undoubtedly one of the highlights of the period is Altech`s significant growth
despite the current economic conditions, as the group remains focused on its
global expansion strategy. Venter says "Altech has achieved excellent results
despite the fact that both local and international economic trends have been
depressed and turbulent".
Venter added that the local Telecommunications division also contributed
extensively to the group`s interim results, having exceeded far beyond the
expected profit targets which emanated from various transactions and
partnerships. Venter says "Altech Autopage Cellular`s recent distribution
agreement with Neotel as well as our recent partnership with Kulula fits
perfectly with the company`s business strategy and long history of
independence". Venter added that through Mobile Portability, Altech Autopage
Cellular achieved a net gain of 10 000 subscribers and that the current number
of total subscribers is approaching the 1 million mark.
Meanwhile, Altech Netstar recorded a Stolen Vehicle Recovery (SVR) subscriber
base of nearly 500 000 subscribers, enabling it to retain its status as South
Africa`s leading vehicle tracking company. The merger of Altech Netstar Fleet
Management Services and ComTech into Altech Netstar Fleet Solutions is now a
formidable player in the fleet management tracking arena with approximately a
20% market share. Venter mentioned that the company has signed an agreement
with London Stock Exchange listed ITIS investments of the United Kingdom, to
provide traffic management information, and that a joint venture, Altech Netstar
Traffic, has been formed to capitalise on this opportunity.
Venter elaborated, "We envisaged the current traffic congestion and the
potential traffic chaos that could be related to the 2010 FIFA World Cup as an
excellent opportunity to partner with one of the world`s leading traffic
management and information providers".
Venter also stated that the launch of `Altech Netstar Guardian` had proved very
fruitful to the group and is progressing well in the personal tracking market.
Venter described the Multi-media division`s results as pleasing with Altech UEC
having achieved satisfactory results. He went on to say that Altech UEC
continued to invest substantially in research and development with new set-top
box products being released, particularly in foreign markets. Venter says, "We
are confident that the Indian market will continue to grow substantially
considering that significant customers have already been secured and we
anticipate rapid and considerable growth in the region". On the local playing
field, Venter stated that significant inroads have been achieved and that Altech
UEC is well positioned to potentially participate in the government`s
digitisation plan which involves volumes of 7 million set-top boxes over a 3
year period.
In addition Altech Alcom Matomo, Altech Alcom Radio Distributors and Arrow
Altech Distribution all achieved pleasing results for the period under review.
Venter stated that the Information Technology division contributed substantially
to the group`s overall performance and that the group`s investments in both East
and West Africa were proving to be exceptionally profitable. Altech NamITech
West Africa increased its production to over 100 million pre-paid cellular
vouchers per month, servicing all 5 major operators in the Nigerian market.
On reporting on Altech East Africa, Venter commented "Altech concluded an equity
investment in the Sameer ICT group which includes Kenya Data Networks; Swift
Global and Infocom Limited". Venter added "This investment has placed Altech
East Africa as the leading data operator in the region and has supported
Altech`s globalisation strategy, in particular, our focus on the African
continent". He added that the company is uniquely positioned to capitalise on
international connectivity via undersea fibre optic cables, which should become
available next year. In line with the above, Altech has secured a 10% equity
stake in the Kenyan government`s undersea fibre optic cable initiative called
`TEAMS`. The existing and new inter-country fibre optic cable networks of the
companies in Altech Stream East Africa will be used to connect customers in
`landlocked countries` to international communications networks, relieving their
dependence on slow and expensive satellite connectivity.
Despite Altech`s aggressive expansion strategies, Venter concluded that
stringent cost controls and enhanced efficiencies contributed to the company`s
growth over the past six months in order to not only meet, but to outperform its
profit targets.
On the human capital front, Altech released its updated Transformation Vision
2012 initiative. Venter says "This sets out enhanced broad based black
empowerment targets for each Altech group company, which have been integrated
into management performance assessments as measurable indicators and will
underpin the competitiveness and continued success of our group".
In closing Venter stated that he was particularly pleased with the group`s
growth in operating margin that had increased from 7.7% in the previous year to
the current 9%. "With our strong order book, and with annuity revenue now
representing 77% of the group`s turnover, coupled with the liberalisation and
deregulation of the telecommunications sector, positions Altech for continued
real growth during the second half of the financial year", concluded Venter.
For Further Information:
Craig Venter: Chief Executive Officer Or Paula Eugenio: Group Manager:
PR & Media
Tel: (011) 715-9004 Tel: (011) 715-9037
Fax: (011) 715-9045 Fax: (011) 715-9044
Cell: 083 236 8000 Cell: 083 495 3806
NOTES:
Altech
JSE-listed Altech`s annual revenue exceeds R8 billion. It employs approximately
5,000 people,
mainly in South Africa but also in India, Nigeria, Rwanda and Australia. The
company`s business
activities include cellular service provision, TV decoder manufacture, stolen
vehicle recovery, two-way
radio systems, secure banking solutions and products and services used in the
telecoms industry.
For more information go to www.altech.co.za.
30 September 2008
Sponsor: Investec Bank Limited
Date: 30/09/2008 09:25:29 Produced by the JSE SENS Department.
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