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Cape Town - Local technology group Altron has announced an operational loss for 2015, owing in part to the winding up of cellphone service provider Autopage.
Altron reported a profit before taxation of R89m, 90% below its previous figure of R895m in 2014, leading to a loss of R26m, compared to operational profit of R610m last year.
"During the financial year, a decision was taken to dispose of Altech Autopage's GSM subscriber bases and consequently this business has been classified as a discontinued operation," the company said in a note to shareholders.
The company also suffered because of strike action and the government's continued delay in implementing digital terrestrial television.
"During the year, Altron's profitability was adversely affected by strike action in its manufacturing businesses, a marked decline in orders from Eskom and challenging market conditions in the telecommunications sector. Besides the strike, the multi-media businesses were also affected by lower international orders as a result of a delay in African Digital Terrestrial Television Migration (DTT)," the company said.
Declining margins have been blamed for the decline of Autopage as well as Nashua Mobile which was also wound up last year.
Altron's numbers show that its discontinued operations suffered a massive decline from a R206m profit last year to a R45m loss this year.
The company has moved to reassure shareholders that a management review will see the firm changing its structure.
"Altron's board has undertaken a fundamental review of the group's business strategy. As part of this process, it has been decided that the company will commence transitioning from a family managed business to an independent management structure," Altron said.
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