POSITIONED FOR GROWTH
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.
particularly the residential segment of the market.