| Tue 28 Sep 2010, 7:30 | | ALT - Allied Technologies Limited - Unaudited consolidated interim financial |
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ALT - Allied Technologies Limited - Unaudited consolidated interim financial
results for the six months ended 31 August 2010
Allied Technologies Limited
(Incorporated in the Republic of South Africa)
(Registration number 1946/020415/06)
Share code: ALT
ISIN: ZAE000015251
Unaudited Consolidated Interim Financial Results for the six months ended 31
August 2010
HIGHLIGHTS
Revenue of R4,8 billion
Operating profit of R361 million
Adjusted headline earnings per share 224 cents
Balance sheet remains strong
Condensed consolidated statement of comprehensive income
Six months Six months Year
ended ended ended
31 August 31 August 28 February
% 2010 2009 2010
Figures in R million Change (Unaudited) (Unaudited) (Audited)
Revenue 4 788 4 732 9 200
Operating profit before 361 479 933
capital items
Capital items (Note 1) 1 2 (42)
Results from operating 362 481 891
activities
Finance income 36 14 25
Finance expense (44) (21) (40)
Profit before taxation 354 474 876
Taxation (89) (120) (259)
STC (33) (32) (32)
Profit for the period 232 322 585
Other comprehensive
income
Foreign currency (244) (294) (332)
translation differences
for foreign operations
Effective portion of - 2 -
changes in fair value of
cash flow hedges
Other comprehensive (244) (292) (332)
income for the period,
net of income tax
Total comprehensive (12) 30 253
income for the period
Profit attributable to:
Non-controlling interest 30 38 65
Altech equity holders 202 284 520
Profit for the period 232 322 585
Total comprehensive
income attributable to:
Non-controlling interest (71) 4 19
Altech equity holders 59 26 234
Total comprehensive (12) 30 253
income for the period
Basic earnings per share (29) 207 294 536
(cents)
Diluted basic earnings (28) 205 283 529
per share (cents)
Notes
Six months Six months Year
ended ended ended
31 August 31 August 28 February
% 2010 2009 2010
R million Change (Unaudited) (Unaudited) (Audited)
Headline earnings per (29) 206 292 571
share (cents)
Diluted headline earnings (28) 204 281 562
per share (cents)
Adjusted headline (26) 224 304 605
earnings per share
(cents)
Diluted adjusted headline (25) 221 293 596
earnings per share
(cents)
Basis of preparation
The unaudited interim finacial results have been prepared in accordance with the
recognition and measurement criteria of the AC 500 series, the International
Financial Reporting Standards (IFRS), its interpretations adopted by the
International Accounting Standards Board (IASB) in issue and effective at 31
August 2010 except for the adoption of IFRS 3 Business Combinations 2008 and IAS
27 Consolidated and Separate Financial Statements 2008. All business
combinations occurring on or after 1 March 2010 will be accounted for applying
the acquisition method. The change in accounting policies are applied
prospectively and had no material application in the current period.
The unaudited interim financial results have been prepared in accordance with
the disclosure requirements of IAS 34, Interim Financial Reporting, and in
compliance with the Listings Requirements of the JSE Limited and the
requirements of the South African Companies Act.
The accounting policies used in the preparation of these interim results are
consistent with those used in the annual financial statements for the year ended
28 February 2010.
Figures in R million
1. Capital items
Net profit on disposal of 1 2 -
property, plant and equipment
Net profit on disposal of - - 23
bandwidth capacity
Impairment of intangible assets - - (65)
1 2 (42)
2. Reconciliation between
attributable earnings and
headline earnings
Earnings attributable to Altech 202 284 520
equity holders
Adjustments for:
Capital items - gross (1) (2) 42
201 282 562
Tax effect of capital items - - (18)
Non-controling interest in - - 9
adjustments
Headline earnings 201 282 553
Dilutive earnings attributable to - (3) -
BBBEE minorities in a subsidiary
Fully diluted headline earnings 201 279 553
3. Reconciliation between
earnings and fully diluted
earnings
Earnings attributable to Altech 202 284 520
equity holders
Additional earnings attributable - (3) -
to BBBEE minorities
Fully diluted earnings 202 281 520
4. Reconciliation between headline earnings and adjusted headline earnings
Adjusted headline earnings have been presented to demonstrate the impact of some
accounting charges arising on acquisitions on the headline earnings of the
group. Headline earnings are reconciled to adjusted headline earnings as
follows:
Headline earnings 201 282 553
Amortisation of intangible assets 20 14 40
arising on business combination
Tax effect of adjustments (3) (2) (7)
Adjusted headline earnings 218 294 586
Additional earnings attributable - (3) -
to BEE minorities
Fully adjusted diluted headline 218 291 586
earnings
5. Dividends
It is group policy for dividends to be declared after the financial year.
Condensed consolidated statements of financial position
Six months Six months Year
31 August 31 August 28 February
2010 2009 2010
Figures in R million (Unaudited) (Unaudited) (Audited)
Assets
Non-current assets 2 812 2 147 2 866
Property, plant and equipment 1 084 940 1 051
Intangible assets, including 1 508 1 123 1 599
goodwill
Loans 130 - 130
Deferred taxation 90 84 86
Current assets 1 721 2 114 2 204
Inventories 380 410 370
Trade and other receivables, 1 023 1 244 1 218
including derivatives
Cash and cash equivalents 318 460 616
Total assets 4 533 4 261 5 070
Equity and liabilities
Total equity 2 258 2 279 2 607
Altech equity holders 1 854 1 945 2 122
Non-controlling interest 404 334 485
Non-current liabilities 514 201 544
Loans 321 150 342
Finance lease liability 3 - 11
Deferred income 96 - 96
Deferred taxation 94 51 95
Current liabilities 1 761 1 781 1 919
Trade and other payables 1 653 1 620 1 803
Warranty provisions 13 14 15
Taxation payable 95 147 101
Total equity and liabilities 4 533 4 261 5 070
Condensed consolidated statements of cash flows
Six months Six months Year
ended ended ended
31 August 31 August 28 February
2010 2009 2010
Figures in R million (Unaudited) (Unaudited) (Audited)
Cash flows - operating activities 64 (115) 514
Cash generated by operations 504 575 1 164
Changes in working capital 35 (204) (4)
Net financial expense (8) (7) (15)
Taxation paid (126) (153) (305)
Cash available - operating 405 211 840
activities
Dividends paid
- Altech equity holders (331) (313) (313)
- Non-controling interest (10) (13) (13)
Cash flows - utilised in (285) (351) (677)
investing activities
Cash flows (applied in) from (77) 15 (138)
financing activities
Decrease in net cash and cash (298) (451) (301)
equivalents
Cash and cash equivalents at - - 6
acquisiton
- at beginning of period 616 911 911
- at end of period 318 460 616
Supplementary information
Six months Six months Year
ended ended ended
31 August 31 August 28 February
2010 2009 2010
Figures in R million (Unaudited) (Unaudited) (Audited)
Depreciation and amortisation 146 97 232
Capital expenditure 169 272 483
Capital commitments 52 432 137
Lease commitments 160 200 235
Payable within the next 12 91 85 93
months:
- property 53 51 50
- plant, equipment and vehicles 38 34 43
Payable thereafter: 69 115 142
- property 32 85 73
- plant, equipment and vehicles 37 30 69
Net foreign exchange losses (10) (36) (23)
Weighted average number of shares 97,374 96,725 96,933
(million)
Diluted average number of shares 98,668 99,171 98,342
(million)
Shares in issue at end of period 97,374 96,753 97,374
(million)
Ratios
EBITDA 543 592 1 190
Operating margin (%) 7,5 10,1 10,1
ROCE (%) 31,3* 41,2* 35,2
ROE (%) 21,7* 29,2* 26,1
ROA (%) 29,0* 36,8* 35,3
Current ratio 1,0 1,2 1,1
Acid test ratio 0,8 1 1
NAV (cps) 1 904 2 008 2 179
* Annualised
Condensed consolidated statement of changes in equity
Attributable to Altech equity holders
GROUP Share capital Treasury Retained
Figures in R million and premium shares Reserves earnings
Balance at 1 March 2009 7 (292) 116 2 418
Total comprehensive income
Profit for the period 284
Other comprehensive income
Effective portion of changes 2
in fair value of cash flow
hedges
Foreign currency translation (260)
differences for foreign
operations
Total other comprehensive - - (258) -
income
Total comprehensive income - - (258) 284
Transactions with owners,
recorded directly in equity
Contributions by and
distributions to owners
Issue of share capital 5
Dividends to equity holders (313)
Share-based payment 1
transactions
Total contributions by and 5 - 1 (313)
distributions to owners
Total transaction with 5 - (313)
owners
Balance at 28 August 2009 12 (292) (141) 2 389
Total comprehensive income
Profit for the period 236
Other comprehensive income
Foreign currency translation (26)
differences for foreign
operations
Effective portion of changes (2)
in fair value of cash flow
hedges
Total other comprehensive - - (28) -
income
Total comprehensive income - - (28) 236
Transactions with owners,
recorded directly in equity
Contributions by and
distributions to owners
Issue of share capital 33
Share-based payment 7
transactions
Total contributions by and 33 - 7 -
distributions to owners
Changes in ownership
interests in subsidiaries
Changes in ownership following (94)
subscription for additional
share capital and dilution
Total changes in ownership - - (94) -
interests in subsidiaries
Total transactions with 33 - (87) -
owners
Balance at 28 February 2010 45 (292) (256) 2 625
Total comprehensive income
Profit for the period 202
Other comprehensive income
Foreign currency translation (143)
differences for foreign
operations
Total other comprehensive - - (143) -
income
Total comprehensive income - - (143) 202
Transactions with owners,
recorded directly in equity
Contributions by and
distributions to owners
Dividends to equity holders (331)
Share-based payment 4
transactions
Total contributions by and - - 4 (331)
distributions to owners
Total changes in ownership - - - -
interests in subsidiaries
Total transactions with - - 4 (331)
owners
Balance at 31 August 2010 45 (292) (395) 2 496
GROUP Non-controlling Total
Figures in R million Total interest equity
Balance at 1 March 2009 2 249 298 2 547
Total comprehensive income
Profit for the period 284 38 322
Other comprehensive income
Effective portion of changes 2 2
in fair value of cash flow
hedges
Foreign currency translation (260) (34) (294)
differences for foreign
operations
Total other comprehensive (258) (34) (292)
income
Total comprehensive income 26 4 30
Transactions with owners,
recorded directly in equity
Contributions by and
distributions to owners
Issue of share capital 5 - 5
Dividends to equity holders (313) (13) (326)
Share-based payment 1 - 1
transactions
Total contributions by and (307) (13) (320)
distributions to owners
Total transaction with (307) (13) (320)
owners
Balance at 28 August 2009 1 968 289 2 257
Total comprehensive income
Profit for the period 236 27 263
Other comprehensive income
Foreign currency translation (26) (12) (38)
differences for foreign
operations
Effective portion of changes (2) (2)
in fair value of cash flow
hedges
Total other comprehensive (28) (12) (40)
income
Total comprehensive income 208 15 223
Transactions with owners,
recorded directly in equity
Contributions by and
distributions to owners
Issue of share capital 33 - 33
Share-based payment 7 - 7
transactions
Total contributions by and 40 - 40
distributions to owners
Changes in ownership
interests in subsidiaries
Changes in ownership (94) 181 87
following subscription for
additional share capital and
dilution
Total changes in ownership (94) 181 87
interests in subsidiaries
Total transactions with (54) 181 127
owners
Balance at 28 February 2010 2 122 485 2 607
Total comprehensive income
Profit for the period 202 30 232
Other comprehensive income
Foreign currency translation (143) (101) (244)
differences for foreign
operations
Total other comprehensive (143) (101) (244)
income
Total comprehensive income 59 (71) (12)
Transactions with owners,
recorded directly in equity
Contributions by and
distributions to owners
Dividends to equity holders (331) (10) (341)
Share-based payment 4 - 4
transactions
Total contributions by and (327) (10) (377)
distributions to owners
Total changes in ownership - - -
interests in subsidiaries
Total transactions with (327) (10) (337)
owners
Balance at 31 August 2010 1 854 404 2 258
Segment analysis
The segment information has been prepared in accordance with IFRS 8 - Operating
Segments (IFRS 8) which defines the requirements for the disclosure of financial
information of an entity`s operating segments.
IFRS 8 replaces IAS 14 - Segment Reporting. The standard requires segmentation
based on the group`s internal organisation and reporting of revenue and
operating income based upon internal accounting presentation.
The segment revenues and operating profit generated by and total assets of each
of the group`s reportable segments are summarised as follows:
Revenue
Six months to Six months to 12 months to
31 August 31 August 28 February Growth
Figures in R 2010 2009 2010 Cur/Pyr
million
Altech Autopage 2 819 2 796 5 597 0,8%
Cellular
Altech UEC Group 544 597 1 079 (8,9%)
Altech Netstar 473 434 880 9,0%
Group
Kenya Data 217 215 401 0,9%
Networks
Altech 56 - 61 -
International
(Bandwidth)
Other Altech 761 728 1 353 4,5%
Segments
Altech Group 4 870 4 770 9 371 2,1%
Amortisation of - - - -
intangibles
Corporate and (82) (38) (171) 115,8%
Intersegment
eliminations
Altech Group 4 788 4 732 9 200 1,2%
Revenue
Six months to Six months to
31 August 31 August
Figures in R 2010 OM% 2009 OM%
million
Altech Autopage 104 3,7 145 5,3
Cellular
Altech UEC Group (9) (1,7) 18 4,7
Altech Netstar 137 29,0 139 32,3
Group
Kenya Data 19 8,8 97 28,5
Networks
Altech 39 69,6 - 28,5
International
(Bandwidth)
Other Altech 93 12,2 102 13,0
Segments
Altech Group 383 7,9 501 9,2
Amortisation of (20) - (14) 28,5
intangibles
Corporate and (2) 2,4 (8) 13,0
Intersegment
eliminations
Altech Group 361 7,5 479 8,8
Operating profit
12 months to
28 February Growth
Figures in R 2010 OM% Cur/Pyr
million
Altech Autopage 296 5,3 (28,3%)
Cellular
Altech UEC Group 5 0,5 (150,0%)
Altech Netstar 269 30,6 (1,4%)
Group
Kenya Data 158 39,4 (40,2%)
Networks
Altech 45 73,8 -
International
(Bandwidth)
Other Altech 202 14,9 (23,6%)
Segments
Altech Group 975 10,4 (23,6%)
Amortisation of (40) - (42,9%)
intangibles
Corporate and (2 ) 1,2 (75,0%)
Intersegment
eliminations
Altech Group 933 10,1 (24,6%)
Message to shareholders
The directors hereby present the Altech Group results for the six month period
ending 31 August 2010.
Continued difficult general economic conditions and the global market stagnation
impacted on certain of the market segments in which the Altech Group operates.
Revenue increased to R4 788 billion with an operating profit of R361 million.
Adjusted headline earnings per share were 224 cents compared to 304 cents in the
prior year. Cash remains positive at half-year end at R318 million. Return on
equity and capital employed are at healthy levels at 22% and 31% respectively.
OPERATIONAL REVIEWS
TELECOMMUNICATIONS
Telecommunications and Wireless Communications
Altech Autopage Cellular (AAC)
Revenue for the reporting period was marginally higher compared to the same
period of the prior year, largely due to slower subscriber growth and a decrease
in tariffs from the networks. The Operating Income budget was achieved; however
this was below that of the prior year due to the expected non-achievement of the
Vodacom quarterly incentives for the first quarter. Agreement has been reached
with Vodacom to recover some of these incentives during the remainder of this
financial year, subject to certain subscriber acquisition targets being met.
During the period AAC focussed on more effective cost of sales to drive future
growth in subscriber numbers and stay competitive in the market.
In line with the continued focus on broadband and data growth, AAC launched the
"Broadband Central" campaign nationally which has resulted in positive growth in
all broadband products. An alignment with Altech Technology Concepts (ATC) is
well underway and will provide the necessary platform to execute a converged
voice/data offering to the AAC client base. The expected completion of the Phase
1 roll out of a number of competitive integrated services such as hosting,
hosted services, consumer ADSL and VoIP is planned for November 2010. In
addition, ATC has been relocated to the AAC campus in Midrand to further
facilitate collaboration between the organisations.
The reduction of Mobile Termination Rates implemented by ICASA continued during
the period under review. The implementation of the suggested rate reductions
initially to 65 cents had an impact on the Fixed-to-Mobile Least Cost Routing
(LCR) revenues, although these were in line with expectations and budgeted for
accordingly. AAC in collaboration with ATC will implement a VoIP solution with
the intention of migrating a large proportion of existing LCR customers to the
new VoIP platform. ICASA was expected to announce a final decision on Mobile
Termination Rates, however, this has been delayed.
The expanded investment within ATC will provide the necessary platform to
develop and market converged voice/data services on an enhanced basis.
Significant emphasis has been placed on retaining existing subscribers and
signing up new customers through AAC`s current national retail stores and by
increasing the distribution footprint with the opening of additional retail
stores in specific A-grade shopping malls. Sales via the retail franchise
channel have increased by 51% over the previous half year.
Service delivery remains a core focus and initiatives to improve areas of
service delivery are constantly underway. Meeting the 31 December 2010 deadline
for RICA registrations is also a priority.
Altech Netstar Group
The Altech Netstar base of subscriber vehicles continued to show growth during
this period despite lower vehicle sales in the upper market segment
predominantly served by Netstar. While the consumer and commercial markets
remain under pressure, a number of new business activities are underway and are
expected to drive strong growth going forward. These include the awarding of a
fleet management supply contract by a large global mining group, success in a
substantial fleet management tender within the public sector, and obtaining a
contract from a local motor vehicle manufacturer.
Netstar Traffic was launched in partnership with Garmin and a Radio Data Signal
(RDS) agreement was signed with the SABC, making Altech Netstar the only
tracking company with the ability to broadcast digital traffic updates via
radio.
Altech Technology Concepts
Altech Technology Concepts (ATC) has remained focussed on growing the current
business which has seen revenue improve by 98%. Investment in additional sales
and technical resources continues in order to drive growth into 2011.
Approval for the expanded investment within ATC was concluded during the period.
This will allow ATC to transform from a Tier-2 to a Tier-1 internet service
provider by implementing a new network with its own international links. ATC
will have both SEACOM and SAT-3 capacity, thereby ensuring international link
redundancy. This new infrastructure will enable ATC to enter the market by
November 2010 with a number of new internet and related products for both the
business and consumer markets.
ATC will extend its range of managed services that will be offered to the
corporate market via its already strong market presence and to the SME and
consumer market via Altech Autopage Cellular.
Converged Services and Connectivity
Altech Alcom Matomo
Altech Alcom Matomo provides a number of specialised mission-critical radio and
telemetry products and solutions. The company continues to record solid
performances despite the adverse market environment, experiencing positive
customer growth in the SADC region.
Successful mission-critical radio communications support for the 2010 World Cup
stadia was successfully completed. The company is now implementing a range of
projects for police services in neighbouring countries and significantly
upgrading the City of Cape Town`s communications network, as well as fulfilling
orders for the national power utility and certain municipalities.
Altech Alcom Radio Distributors
Altech Alcom Radio Distributors is a channel distributor for the Motorola
product set, and has regularly featured amongst Motorola`s top distributors for
Europe, Middle East and Africa.
Digital mobile radio sales continue to expand positively as the new technology
is being assimilated by the market. Software-based radio applications to enhance
the productivity of these digital systems are being explored, and these are
expected to support further expansion of the product range.
Altech Fleetcall
Altech Fleetcall is a national trunked radio network operator. It provides
airtime services for wireless voice and data communication for telemetry,
dispatching, alarm monitoring, fleet management, security and many more voice
and data applications. It has its own national network infrastructure and
primarily serves customers operating fleets of vehicles and closed user groups.
Altech Fleetcall had a positive start to the year with profit before tax up by
7,8%. The company has successfully implemented phase one of the project to
provide seamless and instantaneous radio communication services for the Gautrain
Rapid Rail Link and has continued to grow its subscriber base over the last
period.
Altech Stream East Africa
Altech Kenya Data Networks (KDN) produced profitable results for the period
albeit at a reduced level due to postponements in the initiation of key revenue
streams as a result of infrastructure roll-out delays. Other adverse factors
included lower bandwidth prices during the period, together with submarine and
terrestrial cable cuts (resulting in some loss in revenues as well as delays in
terminating legacy high-cost satellite connectivity), and sale of portion of the
group`s submarine broadband capacity (which was completed by the half-year end),
taking somewhat longer than expected.
Progress with infrastructure roll-out will resume fully in the second half of
the year, and long-term network growth will continue. KDN`s position as the
infrastructure provider of choice in East Africa will be strengthened by the
current expansion of its network in neighbouring countries, notably Uganda and
Rwanda.
On the marine side, SEACOM capacity has been fully allocated and optimisation
programmes are in progress to balance the loading between TEAMS and SEACOM
capacity, in addition to providing a blended offering with increased resiliency.
Competition in the environment has increased significantly with additional
marine capacity being made available to the East African market, with a
resultant impact on bandwidth pricing. This has enhanced the need for focussed
operations and hence the businesses have been orientated along wholesale and
retail lines, with KDN focussing on the wholesale and regional segment whilst
the other Altech companies in Uganda, Kenya and Rwanda focus on the retail and
application segments of the market.
It has been a year of consolidation and rationalisation for Altech Swift Global
("Swift"). The company`s technical platforms have been integrated into the KDN
infrastructure framework, whilst all retail services and products have been
assimilated from KDN into the Swift portfolio as a function of the
retail/wholesale business re-orientation.
Altech Infocom Uganda ("Infocom") is the leading internet service provider (ISP)
brand in Uganda and is recognised as a technologically-strong services entity.
It also holds attractive telecommunications infrastructure and service licensing
rights within Uganda. In addition to its existing WiFi and WiMax network
business, Infocom is starting to generate positive revenue from distributing
undersea data cable capacity to Uganda. Major projects which are planned include
the completion of the Kampala-Kigali fibre loop and the metro fibre
implementation in Kampala.
Altech Stream Rwanda is a start up broadband network and internet service
provider (ISP) which was granted the necessary internet and gateway licences in
June 2007. By the 2009/2010 financial year end the business had completed the
rollout of an outdoor WiFi network for consumers and a WiMax network for
corporate customers, both covering most of Kigali, the capital city. The company
is well positioned to achieve market leadership in Rwanda through the
distribution of undersea bandwidth capacity and interconnect facilities, and has
recently secured ducts from the Government of Rwanda from the Ugandan border
through to Kigali. The company has also been successful in winning a key
government tender for the provision of bandwidth services to the Government of
Rwanda.
MULTI-MEDIA AND ELECTRONICS
Altech UEC (AUEC)
Despite the global economic slow-down AUEC has seen the benefits of investment
in developing technologies and products for the Digital Pay TV industry. Local
demand for set-top-boxes (STB`s) remains firm, while exports to Africa,
Australia, Middle East, Europe and India are growing steadily.
Additional investments were made in the local manufacturing plant (which
services the local and international markets) and a total of two million STB
units were produced in the last 12 months.
Ahead of the implementation of the South African Digital Migration (DTT)
programme, AUEC developed a terrestrial STB and has been participating in trials
with all potential operators. AUEC is already selling DTT set-top-boxes into the
African and Australian markets, so the business impact of the delay in SA DTT
has been mitigated. UEC Australia has already delivered 24 000 STBs to the
Australian market for its Digital Migration. In total, AUEC has delivered 1,7
million STBs into the Australian market to date. When the DTT standard decision
is taken for South Africa, UEC will be well positioned to produce locally
designed and manufactured set-top-boxes for whichever of the two standards
(DVBT or ISDB-T) is chosen.
Coupled with this opportunity, AUEC has developed the MediaGate concept which
allows movies to be loaded onto a USB memory stick and played via an internet
protocol STB in the home. This concept will open a new market in the Telco arena
as converged technologies increasingly become a customer requirement.
Arrow Altech Distribution (AAD)
AAD performed well and achieved its targets for the period under review, despite
depressed local industry market conditions.
TECHNOLOGY (INFORMATION TECHNOLOGY)
Altech ISIS
The division strengthened its position with existing customers and is well
positioned to generate strong revenue and income growth going forward with its
innovative, real-time converged customer care and billing solution. Expansion
was supported by substantial investments into project management, business
analysis and systems integration capacity to strengthen its position as a
reputable supplier of turnkey business support systems.
Altech West Africa
Located in Lagos, Nigeria, the company predominantly manufactures prepaid
cellular vouchers for major telecommunications operators in the country and is
currently producing over 100 million prepaid air time vouchers per month.
The company`s product lines have been expanded by adding the capability to
supply initialised and personalised chip-card products to Nigerian
telecommunications network operators and financial service providers.
Professional services capacity has been added to enable the supply,
implementation and support of the Altech group`s e-Security range of products in
Nigeria that includes the supply and support of the Verisign range of products.
Altech Card Solutions (ACS)
Continuing the growth trend of recent years, ACS has experienced excellent
growth in the supply of EFT Point-of-Sale and PIN-pad end-to-end solutions to
leading financial service providers and retailers in the SADC region. Growth has
surpassed expectations in the supply of electronic security products, as turnkey
projects, supported by its fully Payment Card Industry and Europay MasterCard
Visa compliant seven tier security hosting operation centre. Instant and central
issuance card personalisation solutions and integrated financial transaction
services performed as budgeted.
Altech NuPay
This transaction service provider and switching company, acquired by Altech in
June 2009, has managed to exceed its profit targets despite the global economic
downturn. Exciting projects are underway to launch new reconciliation facilities
to a broad market sector, thereby opening up a whole new dimension for the
business. This product group will also help other entities to assist their
clients with better services and reconciliation mechanisms.
ALTECH TRANSFORMATION
The Altech group is committed to transformation and empowerment through skills
enhancement, representative shareholding and widespread development of
disadvantaged communities by focusing on areas with maximum long-term benefit.
Altron`s Transformation Vision 2012 sets the guidelines for developing its
people and the communities around it through education, training and skills
development, health, social welfare and job creation. Altech is proud to confirm
that the Group and its operations have all achieved the targets for 2010 as set
out in the guidelines of Vision 2012.
THE WAY FORWARD
The group believes that the second six months` performance will be much improved
on its first half-year as certain adverse factors which were specific to the
first half-year will not recur.
There will be a continued focus on:
- capitalising on convergence within the Technology, Multi-Media and Information
Technology ("TMT") sector;
- continuing diversification of Altech`s income base within that sector, through
globalisation, and M&A activity;
- expansion of the Altech Data Centre strategy, across selected areas in Africa;
- generally focusing and expanding the strong presence that the company has in
East Africa;
- continuing the transformation of Altech Technology Concepts up the value chain
and into a Tier-1 ISP;
- continued expansion of annuity revenue businesses (currently 82%);
- strong focus on margins, costs, working capital and cash flow;
- participation in the South African and Australian digital migration
programmes.
On behalf of the board
Dr Hilton Davies Craig Venter Dr John Carstens
(Non-Executive (Chief Executive (Chief Financial Officer)
Chairman) Officer)
28 September 2010
Directors
Dr HK Davies (Chairman)#CG Venter (Chief Executive Officer)
Dr JEW Carstens (Chief Financial Officer)PMO Curle*
ML Leoka#R Naidoo#M Sindane#ZJ Sithole#
AMR Smith*#RE Venter#Dr WP Venter#
* British
# Non-executive
Secretaries
Altech Management Services (Pty) Limited
Sponsor
Investec Bank Limited
Altech
Registration number: 1946/020415/06
Share code: ALT
ISIN: ZAE000015251
Date: 28/09/2010 07:30:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
