Non-core sales give Altron profits boost

ALLIED Electronics Corporation (Altron) boosted its profits yesterday for the six months to end August, as it reduced its exposure to the manufacturing sector and divested its non-core assets.

Profit from continuing operations increased 81.55 percent to R187 million, up from R103m, while losses from discontinued operations declined to R37m as compared with a R618m loss reported in the previous corresponding period.

Chief executive Robbie Venter said: “Altron’s non-core businesses, which predominantly operate in the manufacturing sector, have continued to experience difficult trading conditions, although we have seen the benefit of the restructuring that occurred last year in several of these operations. These factors have resulted in a significant reduction in the losses generated from the discontinued operations.”

The group improved revenue, which rose 10 percent to R7.54 billion from R6.8bn. Earnings per share before interest, tax, depreciation and taxation grew by 18 percent to R445m, while headline earnings per share increased 10 percent to 54 cents per share, up from 49c per share in the previous corresponding period.

The group has made inroads in reducing its debt levels after successfully revising its company strategy. Venter said the group had managed to reduce its debt by R1.5bn from the disposal of Altech Autopage and Aberdare Cables.