Altron CEO on Bytes UK listing & how COVID-19 presents opportunities for digital transformation
Altron has reported a 28 per cent increase in headline earnings per share, from the previous comparable period. This is from continuing operations. Despite the impact of COVID-19, the company has declared an interim dividend of 33 cents per share, up 14 per cent from August last year. Altron CEO, Mteto Nyati joins CNBC Africa for more.
Thu, 22 Oct 2020 11:44:58 GMT
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AI Generated Summary
- Altron reports a 28% increase in headline earnings per share, defying COVID-19 impact
- Company announces a dividend increase of 14%, showcasing confidence in future prospects
- Strategic streamlining of operations and planned listing of Bytes UK subsidiary on London Stock Exchange position Altron for growth and international expansion
South African technology company Altron has announced a significant 28% increase in headline earnings per share for the reporting period, despite the challenges posed by the COVID-19 pandemic. The company has declared an interim dividend of 33 cents per share, up 14% from the previous year, showcasing a strong belief in its growth trajectory. Altron CEO, Mteto Nyati, discussed the company's performance and future prospects in a recent interview on CNBC Africa.
Nyati credited the company's success to the accelerated digital transformation in the wake of the pandemic. He highlighted the increasing demand for cloud services and security products as customers transition to a more secure online environment. Altron has strategically decided to streamline its operations by divesting from printing, document solutions, people solutions, and electronic components businesses. The plan is to refocus on high-value, differentiated services in security, cloud computing, data analytics, and artificial intelligence.
The company is poised to become a capital-light organization with its own intellectual property, catering to the global market. Nyati emphasized the importance of creating a company with unique IP, built by South Africans for the world, positioning Altron as a leader in specialized technology services.
One of the significant moves Altron has made is the planned listing of its Bytes UK subsidiary on the London Stock Exchange. Nyati explained that the decision was driven by the need to unlock the value of the UK operation, which was not fully appreciated on the Johannesburg Stock Exchange. The listing is expected to enhance the visibility and valuation of the subsidiary, providing an opportunity for South African shareholders to participate in the venture.
Addressing regulatory concerns, Nyati assured stakeholders that Altron is engaging with the necessary authorities to ensure compliance with all laws. The company aims to transparently navigate the regulatory landscape and secure approvals for the strategic transactions. Nyati also expressed confidence in the demand for Altron's services, stating that the company is at the beginning of a massive cycle of digital transformation.
Looking ahead, Nyati outlined the vision for 'Altron 2.0,' aiming to triple operating income over the next five years. By focusing on key technology areas and leveraging the opportunities presented by digital advancements like 5G, Altron is well-positioned for sustained growth. The proceeds from the UK subsidiary listing will be used to reduce debt, aligning with the company's goal of achieving a debt-free status.
In conclusion, Altron's performance amidst the pandemic reflects the resilience and adaptability of the company in navigating challenging times. With a clear strategy for digital transformation and a commitment to innovation, Altron is poised to emerge as a leading player in the evolving technology landscape.