Revenue rose 14% to R14.0 billion from R12.2 billion in the prior year and operating income exceeding R1 billion for the first time to reach R1.04 billion (R0.96 billion). Headline earnings per share, at 189c (162c), increased by 17% on the prior year. A deferred tax asset was raised in the current year relating to the acquired CS Holdings businesses which have returned to profitability as well as tax losses incurred in some Altech subsidiaries which are anticipated to be utilised in the short term. The slight operating margin decrease from 7.9% to 7.4%, caused by declines in the overall operating margins at Altech and Powertech were mitigated to some extent by improved margins at BTG's operations. Profit before tax increased by about 15% to R1.1 billion (R0.94 billion) partly due to profits from the disposal of Altech's shareholding in EWG as well as the non-recurrence of the prior year's goodwill write-down on BTG's offshore operation, Plato. This increase was partially offset by a goodwill impairment of R82 million at Altech NamITech. These factors, together with a lower effective tax rate during the year, resulted in an increase in profit after tax of 26% to R751 million (596 million) and a rise in attributable earnings of 10% to R494 million (R448 million).
Outlook
The directors remain positive about the short-to medium-term outlook for the Altron group's businesses based on the following factors:
* the government's commitment to increase investment in the country's power generation, transmission and distribution capacity;
* the forecast for infrastructure spend required to meet the needs of the Soccer World Cup 2010;
* the continuing strong conditions in the building and construction industries;
* the conversion of the financial industry to the EMV standard;
* the deregulation of and growth in the rapidly expanding South African telecoms industry; and
* the improving business environment in the IT sector.
As a result further real growth in earnings for the year ahead is expected.
Dividends
An ordinary dividend (No. 58) of 78cps (63cps) and participating preference dividend (No.12) of 78cps (63cps) was declared for the period.
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