PO­SI­TIONED FOR GROWTH

Finweek English Edition - - Companies & Markets - LAUREN COLE

AL­LIED ELEC­TRON­ICS COR­PO­RA­TION (Al­tron) spans a va­ri­ety of sec­tors, from power gen­er­at­ing through its Pow­ertech sub­sidiary to com­mu­ni­ca­tions net­works through Al­tech.

With min­i­mal gear­ing and a strong cash flow, Al­tron is well placed to make strate­gic ac­qui­si­tions in the rapidly grow­ing in­for­ma­tion, com­mu­ni­ca­tions and tech­nol­ogy sec­tor. In the six months to Au­gust, the group spent R1,2bn on a num­ber of key ac­qui­si­tions, all of which were fi­nanced from avail­able cash re­sources. With an­nu­alised re­turn on net as­sets and cap­i­tal em­ployed of 32,6% and 32,3% re­spec­tively, the group’s in­vest­ment strat­egy is clearly work­ing.

The group re­cently added to its re­gional ge­o­graphic spread, ac­quir­ing a con­trol­ling in­ter­est in Kenya’s Sameer ICT Group. With strate­gic in­vest­ments in Cen­tral and East Africa, plus offices in Nige­ria, Kenya and Tan­za­nia, Al­tron is well placed to take ad­van­tage of growth ex­pected on the con­ti­nent over the next five years. OP­POR­TU­NI­TIES ser­vice (I-ECNS) and elec­tronic com­mu­ni­ca­tions ser­vice (I-ECS) li­cence, en­abling it to de­velop and op­er­ate its own tele­coms net­work. on sig­nif­i­cant in­creases in power in­fra­struc­ture spend and strong en­ergy de­mand, par­tic­u­larly from the min­ing sec­tor. and East Africa, has the largest IP-based data and tele­coms busi­ness in the re­gion.

RISKS

par­tic­u­larly the res­i­den­tial seg­ment of the mar­ket.

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