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Johannesburg - Allied Electronics Corporation [JSE:ATN] (Altron) through its principal subsidiaries, Allied Technologies [JSE:ALT] (Altech) and Bytes Technology Group, on Wednesday announced diluted headline earnings per share of 223 cents for the year ended February 2011, from 196 cents previously.
The group reported adjusted headline earnings per share of 248 cents, from 220 cents in 2010 and grew adjusted diluted headline earnings per share to 243 cents, from 217 cents.
Altron's revenue increased by 2% to R22.8bn, with Ebitda increasing by 6% to R2.1bn reflecting an Ebitda margin of 9.2%, up from the prior year's 8.9%.
The group reported dividend growth of 20% to 108 cents per share.
Altron is invested in the telecommunications, multi-media, information technology and power electronics industries.
"Overall, we are pleased with the performance and resilience of the group. We have shown double digit growth even though trading conditions were challenging in a number of our key markets," said Altron chief executive Robert Venter.
Altech remains Altron's biggest contributor towards group revenue and Ebitda, however, Altron noted a marked increase in the contribution from the other two wholly owned subsidiaries, Powertech and Bytes. Profitability at both Bytes and Powertech increased significantly while Altech's profitability reduced in the year under review after a strong, sustained growth performance throughout the toughest part of the global recession, it said.
Altech increased revenue by 5% to R9.7bn but Ebitda decreased 8% to R1.1bn reflecting an Ebitda margin of 11.1%.
As mentioned in its results in April, the company experienced difficult trading conditions particularly in East Africa where new entrants into the telecommunications market and additional broadband capacity from submarine cables forced prices down. Delays in completing local networks in the region also had an impact on profitability.
The remaining businesses in the Altech group performed according to expectation with steady performances from Altech Autopage Cellular and Arrow Altech Distribution coupled with excellent results from Altech Netstar and Altech Card Solutions, Altron said.
Powertech's revenue decreased by 2% to R7.1bn but cost cutting and rationalisation of certain operations resulted in Ebitda increasing by 27% to R539m reflecting an Ebitda margin of 7.6%.
"The transformer business performed exceptionally well on the back of increased demand from municipalities and Eskom. Powertech Cables' revenue increased largely as a result of the higher copper price, and Powertech Batteries performed well in the automotive and mining sectors. The systems integrator businesses delivered very pleasing results after various new contract wins," Altron said.
Increased volumes saw Bytes increase revenue by 2% to R6.1bn and Ebitda by 21% to R474m reflecting an Ebitda margin of 7.8%. Previously loss-making businesses were turned around while cost cutting initiatives and market share gains resulted in improved profits across the board. Record years were recorded by Bytes Systems Integration, Bytes Software Solutions (UK), Bytes Managed Solutions and Bytes Healthcare Solutions, Altron noted.
Looking ahead, Venter said that the board believed that prospects for the year ahead were positive.
"The group, having implemented various initiatives, has stripped costs to a minimum. This puts us in a good position to take advantage of a further upswing in the economy."
He added that the board believed that a turnaround in Altech's East African businesses was imminent with various strategies now in place to correct previous issues.
"Bytes is expected to continue to perform well, with market conditions likely to strengthen further. Powertech's cost efficiency initiatives will continue in the year ahead, but a recovery of the building and construction sector is necessary in order for the cable business to return to acceptable levels," Altron said.
The group reported adjusted headline earnings per share of 248 cents, from 220 cents in 2010 and grew adjusted diluted headline earnings per share to 243 cents, from 217 cents.
Altron's revenue increased by 2% to R22.8bn, with Ebitda increasing by 6% to R2.1bn reflecting an Ebitda margin of 9.2%, up from the prior year's 8.9%.
The group reported dividend growth of 20% to 108 cents per share.
Altron is invested in the telecommunications, multi-media, information technology and power electronics industries.
"Overall, we are pleased with the performance and resilience of the group. We have shown double digit growth even though trading conditions were challenging in a number of our key markets," said Altron chief executive Robert Venter.
Altech remains Altron's biggest contributor towards group revenue and Ebitda, however, Altron noted a marked increase in the contribution from the other two wholly owned subsidiaries, Powertech and Bytes. Profitability at both Bytes and Powertech increased significantly while Altech's profitability reduced in the year under review after a strong, sustained growth performance throughout the toughest part of the global recession, it said.
Altech increased revenue by 5% to R9.7bn but Ebitda decreased 8% to R1.1bn reflecting an Ebitda margin of 11.1%.
As mentioned in its results in April, the company experienced difficult trading conditions particularly in East Africa where new entrants into the telecommunications market and additional broadband capacity from submarine cables forced prices down. Delays in completing local networks in the region also had an impact on profitability.
The remaining businesses in the Altech group performed according to expectation with steady performances from Altech Autopage Cellular and Arrow Altech Distribution coupled with excellent results from Altech Netstar and Altech Card Solutions, Altron said.
Powertech's revenue decreased by 2% to R7.1bn but cost cutting and rationalisation of certain operations resulted in Ebitda increasing by 27% to R539m reflecting an Ebitda margin of 7.6%.
"The transformer business performed exceptionally well on the back of increased demand from municipalities and Eskom. Powertech Cables' revenue increased largely as a result of the higher copper price, and Powertech Batteries performed well in the automotive and mining sectors. The systems integrator businesses delivered very pleasing results after various new contract wins," Altron said.
Increased volumes saw Bytes increase revenue by 2% to R6.1bn and Ebitda by 21% to R474m reflecting an Ebitda margin of 7.8%. Previously loss-making businesses were turned around while cost cutting initiatives and market share gains resulted in improved profits across the board. Record years were recorded by Bytes Systems Integration, Bytes Software Solutions (UK), Bytes Managed Solutions and Bytes Healthcare Solutions, Altron noted.
Looking ahead, Venter said that the board believed that prospects for the year ahead were positive.
"The group, having implemented various initiatives, has stripped costs to a minimum. This puts us in a good position to take advantage of a further upswing in the economy."
He added that the board believed that a turnaround in Altech's East African businesses was imminent with various strategies now in place to correct previous issues.
"Bytes is expected to continue to perform well, with market conditions likely to strengthen further. Powertech's cost efficiency initiatives will continue in the year ahead, but a recovery of the building and construction sector is necessary in order for the cable business to return to acceptable levels," Altron said.
