Our group structure and the nature of our businesses is detailed in the image below.
* Listed on the JSE Ltd (“JSE”)
NEW COMPANY STRUCTURE
What follows is a description of a rationale for the changes made to the Altron company structure as outlined in the new company structure diagram. When reading this description and interpreting the diagram, it is important to refer to the diagram key at the bottom. Furthermore, it is important to note that this discussion covers only the changes that have been made – it does not provide detail on structures, divisions, businesses and operations which have not changed.
BACKGROUND TO THE NEW STRUCTURE
Altron’s achieved its long-term strategy of creating a single listed entry point for investors and optimising its portfolio during the previous financial year when it acquired the remaining minority shares in Altech, delisted Altech and reorganised the group into two entities: Altron TMT (which includes Altech and Bytes) and Altron Power.
Although most of the organisation's structural changes took place in the previous reporting period there were some changes to the Altron organisational structure.
ALTRON POWER ORGANISATIONAL REVIEW
During the year under review, Altron Power separated out some of its cross functional divisions that do not necessarily fall within a specific division with Altron Power but rather provide across the board support to other Altron Power divisions. On the Altron Company structure diagram (www.altron.com/iar2015/company/company-structure-diagram.asp) these operations have been grouped into a separate division referred to as Powertech Other Services.
Organisational changes for the Altron Power divisions include:
In June 2014 Crabtree, which was formerly part of Powertech Cables, separated from the Cables group and is now a standalone company under Powertech Other Services.
No changes were effected for the year under review.
Effective 1 March 2014 Altron Power acquired the business of Webroy Proprietary Limited. Webroy is a leading South African manufacturer of wire, strip and sheet, springs, baskets, cages and shelves.
Powertech Other Services
Divisions within the Altron Power group that provides across the board support to the group’s operations, including Crabtree and Swanib have been group under Powertech Other Services. No changes to the organisational structure of Powertech System Integrators took place during the year under review.
ALTRON TMT ORGANISATIONAL REVIEW
The formation of Altron TMT through the integration of Altech and Bytes has allowed us to reduce duplication by streamlining the business into three business units: telecommunications, multimedia and electronics and information technology. We have also been able to pool scarce and specialist resources that allow us to drive innovation and economies of scale and we have achieved substantial cost savings and increased efficiencies through the implementation of shared services.
The integration we have achieved through the formation of Altron TMT encourages collaboration, the provision of end-to-end solutions, and a more customer-led organisation. To support this, Altron TMT is multiskilling its sales forces so that its members have a holistic view of the wide range of solutions they can offer customers through cross-selling and up-selling.
Organisational changes in the Altron TMT division include:
TELECOMMUNICATIONS DIVISION OVERVIEW
Altech Netstar acquired the entire share capital of Fleetpro (Pty) Ltd in September 2014. Fleetpro, a leading fleet and asset management solutions provider will enable Altech Netstar to offer its customers a fully comprehensive range of fleet solutions. In addition it also acquired the customer base of Celtrac which is an efficient mechanism to grow our market share.
Post financial year-end Altech Netstar also acquired Pinpoint Communications, an Australian company with over 15 years’ of telematics expertise in the Australian and regional market.
During the financial year under review, a decision was taken to dispose of Altech Autopage’s GSM subscriber bases and consequently this business has been classified as a discontinued operation.
MULTIMEDIA DIVISION OVERVIEW
No changes to the organisational structure of Altech Multimedia or Arrow Altech Distribution took place in the year under review.
INFORMATION TECHNOLOGY DIVISION OVERVIEW
On 30 June 2014 Bytes SA acquired the 27% equity Kagiso Strategic Investments and Venopt held in Bytes SA.
Bytes Document Solutions
In the year under review Bytes Document Solutions disposed of their document management systems and electronic communication company, LaserCom. PaperGeni, a specialist paper converter company was disposed of after year end. Both these companies did not form part of the core business operations of the Altron group.
Bytes People Solutions
Bytes People Solutions (BPS) acquired Inter-Active Technologies that specialises in business process outsourcing and now makes up 60% of the BPS offering. This acquisition took place post-year-end 2015.
Bytes UK sold its Bytes Document Solutions operation in the United Kingdom to Xeratec Group Holdings in May 2014.
Bytes Secure Transaction Solutions
Altech TMT purchased the remaining 50% of Altech NuPay (Pty) Ltd, which is part of the Bytes Secure Transaction Solutions (BSTS) business unit. Post year end, Med-E-Mass, which is also part of BSTS, purchased HealthSoft, which enhanced its e-scripting capabilities.
Bytes Managed Solutions
In August 2014, Bytes Managed Solutions disposed of a substantial portion of its retail AT M base, with the aim to focus and grow the rest of its business unit.
No changes to the organisational structure for Bytes Core Business Software took place during the year under review.