COMPANY
STRUCTURE

In 2016 the group concluded its three-year process of streamlining its organisational structure by integrating Altech and Bytes, forming a new division: Altron TMT.

In doing so it has reduced redundant processes and costs by pooling scarce and specialist resources. The introduction of Altron group services, a central body that manages facilities, procurement, marketing and communications, information technology and human capital, further helps to redirect management resources for more strategic purposes. Altron TMT is now organised around three business units: telecommunications, multimedia and electronics, and information technology. Each Altech and Bytes company has been grouped into these units where their product and services offering is complementary to other similar companies within the same grouping:

  • The telecommunications unit provides communications services ranging from voice, data and video to digital radio communication networks and internet services.
  • The multimedia and electronics division designs and produces various products such as set-top boxes and distributes electronic components, products and solutions.
  • The information technology division provides services including specialised software solutions and secured transactional solutions for the financial, retail and healthcare industries. In addition, it provides complete outsource solutions for IT and communications infrastructure necessary to enable business processes.

Collectively these divisions and their respective businesses are well positioned to deliver seamless end-to-end solutions to our clients and customers and capture opportunities for cross-selling. It is in these areas that the future of Altron lies as we work to refocus and reposition the group in the technology domain and exit non-core manufacturing businesses.

Key organisational changes

Acquisitions

  • Altech Netstar acquired Pinpoint Communications, an Australian company with over 15 years of telematics expertise in the Australian and regional market. The acquisition is in line with the geographic expansion strategy of the business and allows it to gain access to new fleet and asset management markets in Australia.
  • Med-e-Mass purchased HealthSoft, a provider of market-leading electronic solutions that enable healthcare professionals to improve the clinical interaction between practitioner and patient by offering various services such as e-prescribing, disease information, a comprehensive pharmacopoeia in medical and layman’s language, medical illustration and medicinal identification.
  • Altech NuPay acquired Delter IT Services, a microfinance software development company that provides consumer management systems to credit providers. It currently manages back office integration services from loan origination to collections, whilst ensuring compliance with all regulatory requirements.

Disposals

  • Altron took the decision to dispose of Altech Autopage subscriber bases effective 12 February 2016 due in part to the impacts of the ongoing mobile termination rate reductions as well as continued industry and consumer deflationary pressures in 2015. The remaining “non-GSM” businesses of Altech Autopage were moved to Bytes Systems Integration.
  • Dynamic Battery Services (UK), part of Powertech Batteries, was sold to Metair Investments Limited.
  • Powertech announced the disposal of 75% of its shareholding in Aberdare Cables and Aberdare International, and will dispose of 100% of its shareholding in Aberdare Europe, including Cables de Comunicaciones Zaragoza, S.L. (Cablescom) and Alcobre – Condutores Eléctricos, S.A. to Hengtong Optic-Electric Co,. Ltd (HTGD), a leading Chinese power and fibre optic cable manufacturer. Effectively, Powertech will retain a 17,5% shareholding in Aberdare Cables for a minimum of two years. This transaction is close to being concluded after the year-end.
  • Alcon Marepha
  • Powertech Africa, after year-end

Discontinuations

  • The Altech Node, the world’s first fully converged home gateway console, was discontinued in October 2015, following disappointing market traction. Unfavourable market conditions together with increased competition in the video-on-demand (VOD) and subscription video-on-demand (SVOD) market resulted in insufficient subscribers for the business to be viable. For more detail on this decision, see “Closing the Altech Node”, Products and services.
  • Powertech Transformers has been classified as a discontinued operation and held for sale in line with Altron’s strategy of disposing of its manufacturing operations.
  • At year-end, Altech UEC and the remaining portions of Altron Power were classified as discontinued operations and disposals group held for sale.