Altron HEPS down 18%
Altron has released its annual results and the company has reported an 18 per cent drop in headline earnings per share for the year ended February 2021. Altron’s revenue remained flat compared to the prior year and thy have cited the effects of Covid-19 for this performance. Joining CNBC Africa for more is Mteto Nyati, CEO of Altron.
Mon, 17 May 2021 11:17:02 GMT
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AI Generated Summary
- Altron reports an 18% drop in HEPS for the year ending in February, citing Covid-19 impact on operations
- Strategic investments in security, cloud services, data, and automation bolster Altron's revenue resilience amidst market challenges
- Focus on high-growth sectors like cloud computing, data management, and cybersecurity to drive future expansion and profitability
Altron, a leading technology company, has recently released its annual results, revealing an 18% decrease in headline earnings per share for the year ending in February. Despite this decline, Altron's revenue remained steady compared to the previous year, with CEO Mteto Nyati attributing the performance to the impact of the ongoing Covid-19 pandemic. In a recent interview with CNBC Africa, Nyati shed light on the company's financial results and outlined key growth areas for the future. One of the standout points from the interview was the company's strategic decision to focus on high-growth sectors such as security, cloud services, data, and automation. These investments paid off, enabling Altron to maintain its revenue amidst challenging market conditions. Nyati acknowledged that certain operations, particularly the printing business, were adversely affected by the pandemic, resulting in an 8.5% decline in EBITDA. However, he emphasized the resilience of other segments, notably security and cloud services, which saw increased demand as businesses accelerated their digital transformation efforts. Nyati highlighted the success of Altron's Carabina and NetStar divisions as beacons of strength during a tumultuous period. Looking ahead, Nyati expressed optimism about the growth potential in key areas such as cloud computing, data management, and cybersecurity. He projected double-digit annual growth rates in these sectors over the next five years, positioning Altron as a frontrunner in capturing this expansion. Additionally, Nyati provided insights into Altron's strategic divestment of non-strategic operations, with the aim of streamlining the company's focus and generating funds for further investment. By disposing of three operations that no longer align with Altron's strategic vision, the company expects to raise approximately 700 million in working capital. These proceeds will be channeled towards enhancing Altron's presence in high-growth areas and reinforcing its market position. Nyati also revealed that Altron has a favorable debt-to-EBITDA ratio, providing ample room for potential acquisitions. He emphasized the importance of identifying opportunities that align with the company's criteria, focusing on businesses with high growth potential, annuity income streams, proprietary technology, and solid financial foundations. While acknowledging the challenges of acquiring such businesses, Nyati remained optimistic about Altron's ability to pursue strategic expansion opportunities in the future.