Altech: good numbers expected

Johannesburg - JSE-listed Allied Technologies' trading statement for the year to end-February is in line with the positive expectations of the investment community, an analyst said.

"Altech has been successful and there is an industry expectation that they will continue to do well," said Kaplan Equity Analysts MD Irnest Kaplan.

Altech, a member of the Allied Electronics (Altron) Group, is involved in the telecommunications, multimedia and information technology industries and owns brands like vehicle-tracker Netstar and service provider Autopage Cellular.

Altech on Tuesday said it expected a 30%-38% jump in its headline earnings per share. No reason for the increase was given.

Its adjusted headline earnings per share are expected to increase by 10%-19%.

"Autopage and Netstar are two businesses which contribute a lot to the company's performance and both are very defensive in difficult times," said Kaplan. "Not many people are likely to cancel their cellphone contracts and vehicle-tracking services."

Along with these services, Altech's expansion into Kenya is likely to reap rewards.

Altech acquired 51% of controlling interest in East African digital network operations - Kenya Data Networks (KDN), Swift Global (Kenya) and Infocom. This acquisition was effective from March 2008.

"Its investment into Kenya will certainly contribute to its success," said Kaplan. "It is likely to have a impact on Altech's results."

"Even in tough times, Altech's businesses are doing relatively well. They may not grow substantially but they will certainly perform well," said Kaplan.

"It's probably best to look at its adjusted headline earnings. You're comparing like with like so it's a fairer view," he said. "It's a very good increase in these times."

Altech will release its full-year numbers on April 23.

- Fin24.com