Altron slashes dividend, freezes salaries in response to COVID-19
Altron has seen an increase of 6 per cent and 2 per cent in its group revenue and headline earnings respectively for its year ended results. The company is committed to preserve cash during the uncertain COVID-19 economic climate and has declared a dividend that is 40 per cent less than what they would have declared, its 24 per cent decrease at 55 cents per share. Joining CNBC Africa for more is Mteto Nyati, CEO of Altron.
Thu, 14 May 2020 11:11:40 GMT
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AI Generated Summary
- Altron reports a 6% increase in group revenue and a 2% increase in headline earnings per share for the year ended
- The company declares a dividend that is 40% lower than initially planned, aiming to preserve cash during the COVID-19 economic downturn
- CEO Mteto Nyati emphasizes the importance of a conservative financial approach, focusing on stakeholder well-being and sustainability to avoid job losses
Altron, a technology company based in South Africa, has reported a 6% increase in group revenue and a 2% increase in headline earnings per share for the year ended. In response to the uncertain economic climate brought about by the COVID-19 pandemic, the company has taken steps to preserve cash, including declaring a dividend that is 40% lower than what they had initially planned. The dividend saw a 24% decrease, now standing at 55 cents per share. Mteto Nyati, the CEO of Altron, joined CNBC Africa to provide insights into the decision-making process behind the dividend cut. Nyati explained that the decision was made after careful consideration of various stakeholders. The management team at Altron took a proactive approach by cutting their bonuses by 50% and freezing salary increases in an effort to avoid job losses within the company. Additionally, non-executive directors agreed to a 30% reduction in their fees. Nyati emphasized the importance of taking a conservative approach to financial planning during these uncertain times, despite Altron having a strong balance sheet. He highlighted that the company's focus on digital transformation has positioned them well to weather the challenges posed by the pandemic. Nyati noted that Altron's significant progress in the past three years, including reducing debt and embracing cloud technologies, has strengthened their resilience. This transformation has enabled the company to operate seamlessly during the work-from-home scenario imposed by the pandemic. Nyati also addressed concerns about potential salary cuts or retrenchments at Altron, stating that the company's priority is the well-being of its employees and the sustainability of the business. By implementing measures such as bonus cuts and salary freezes, Altron aims to protect jobs and navigate the current economic uncertainty effectively. Overall, Nyati expressed confidence in Altron's ability to adapt to the challenges posed by COVID-19 and continue delivering value to its customers.
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