ORGANISATIONAL
REVIEW

COMPANY STRUCTURE

2017 was our first year of operating within our rationalised company structure. While we still hold some of our non-core operations, those so categorised are classified as held for sale. This does not mean that those entities are no longer operational; rather that they no longer form part of our core business operations.

Altron TMT, into which our core businesses were grouped last year, is organised into three business divisions: telecommunications, multimedia and electronics, and information technology. Each Altech and Bytes company falls under these units within a group of similar and complementary companies and/or product and services offering.



We believe that it is in these areas that the future of Altron lies as we work to refocus and reposition the group as a technology powerhouse. Collectively, these divisions and their respective businesses are well positioned to deliver seamless and holistic end-to-end solutions to our customers.

KEY ORGANISATIONAL CHANGES

Disposals and closures

  • Powertech Africa disposed of effective 1 April 2016.
  • Effective 30 June 2016 Power Technologies disposed of 75% of its 70% equity interest in Aberdare Cables. Aberdare International also disposed of 100% of its equity interest in Aberdare Europe, including Cables de Comunicaciones Zaragoza, S.L. (Cablescom) and Alcobre Condutores Eléctricos, S.A. to Hengtong (HTGD), a leading Chinese power and fibre optic cable manufacturer, effective 30 June 2016. Powertech will retain a 17,5% shareholding in Aberdare Cables for a minimum of two years. The disposal did not include the group’s 50% shareholding in the CBI Telecom Cables joint venture.
  • Strike Technologies was sold to Penbro Kelnick effective 30 June 2016.
  • Technology Integrated Solutions (TIS) was sold effective 1 November 2016.
  • NOR Paper, a division in Bytes Document Solutions, was closed and inventory sold off.

Discontinuations/Held for sale

The following entities remain operational, but no longer form part of our core operations.

  • Powertech Transformers
  • Crabtree Electrical Accessories
  • Powertech Batteries Group
  • Powertech System Integrators
  • Altech Multimedia/UEC


GLOBAL FOOTPRINT

Following the group’s rationalisation, Altron has reduced its global presence. However, the group retains a direct presence in eight (2016: 18) countries, including South Africa. In addition, our strategic partnerships with leading international technology companies gives us access to leading technology capabilities and products from across the world, including Asia, Europe and North America.

The majority of our revenue (71%) and headcount (96%) are derived from the local market in South Africa where the group is headquartered.

Looking forward, we intend to expand our top-performing businesses to different countries and continents. We will, however, manage the risk of doing so by proceeding cautiously; ensuring that we test foreign markets and follow our customers.