Altron TMT half year results show solid growth

Altron TMT revenue increased by 7% from R8.7billion to R9.3 billionAdjusted HEPS at a consolidated level increased by 14% from R260 million to R296 million11% EBITDA growth from R616 million to R681 millionAltech operating profit up 15% to R295 millionBytes operating profit up 13% to R213 millionDisposal of loss-making East and West Africa operations has seen improvement in Altechs performance.Significant contracts secured across Altron TMTFollowing the release of Altrons Interim Results for the six months ending 31 August 2013, Craig Venter, Group Executive: Altron TMT, said he was pleased with the solid performance of both Altech and Bytes.The six months to end August showed good performances by both companies and with the recent establishment of Altron TMT, consisting of these two powerhouses, I expect to see even better results at the end of the next reporting period as we continue to take advantage of the synergies and cross-sell and up-sell opportunities between these two groups, Craig Venter said.The creation of Altron TMT (Telecommunications, Multi-media and Information Technology) in August 2013 followed Altrons successful purchase of all the remaining shares in Altech that it did not already own and the subsequent delisting of Altech from the Johannesburg Stock Exchange (JSE) on 20 August 2013.The acquisition of the Altech minority shareholders shares in Altech enabled Altron to reorganise its TMT businesses in a more efficient way in order to increase revenue growth, enable effective business cross-sell and up-sell opportunities, and achieve cost savings.  Craig Venter was appointed as Group Executive: Altron TMT, while retaining his position as Chief Executive Officer: Altech.The creation of Altron TMT is the result of the increasing convergence that we see between the Telecommunications, Multi-media and Information Technology sectors and by bringing Altech and Bytes together, we will be able put forward the best possible combination of products, solutions and services to our customers, added Venter.On a consolidated level Altron TMT increased revenue by 7% from R8.7 billion to R9.3 billion and normalised EBITDA by 11% from R616 million to R681 million.  The EBITDA margin improved from 7.1% to 7.3%.  Normalised headline earnings improved 18% to R284 million. Profit before tax on a consolidated level was a pleasing R439 million and adjusted headline earnings at a consolidated level went from R260 million to R296 million14% up on the previous year.Altech maintained revenue at R5.1 billion compared to the prior years revenue of R5,2 billion, while normalised EBITDA increased by 12% to R417 million with the normalised EBITDA margin increasing from 7.2% to 8.1%. Normalised headline earnings increased by 22% to R151 million. Profit before tax was R219 million and total Altech group operating profit of R295 million was 15% up on the prior year.The disposal of our East and West African operations and the termination of the operating losses we experienced from those regions will see Altech once again returning to its previous profit levels as we focus on our core assets and unlock value from innovation and convergence, said Venter?Bytes reported an 18% increase in revenue to R4.1 billion and an 8% increase in EBITDA.  The EBITDA margin declined from 6.9% to 6.4%. Headline earnings for the Bytes group was up 14% to R133 million. Profit before tax was R220 million (excluding capital items) and total Bytes group operating profit of R213 million was 13% up on the prior year.This combination of Altrons TMT businesses under a single organisation has already unlocked additional revenue streams, seen efficiency improvements and resulted in new innovations and growth opportunities.  Our order book on hand currently stands at more than R2 billion and this is a result of a number of contracts concluded across both Altech and Bytes. Most notable of these is Altech Multimedia which has secured orders to the value of more than R1 billion, and Altech Alcom Motomo has secured contracts worth more than R140 million. Bytes Managed Solutions won a three year contract to the value of approximately R400m from Absa/Barclays for IMAC/ Break-fix services in Africa, while Bytes Universal Systems secured a R250 million contract with a major public sector client. I look forward to the continued benefits of this new alignment and to delivering even more promising products and services into the market, Venter concluded.The development of Altron TMT means that Altron is now the largest privately owned converged solutions provider on the African continent.-ENDS-?Notes to Editors:About Allied Technologies LimitedAllied Technologies Limited (Altech) is a leading South African multi-billion rand group involved in the design, development and convergence of Telecommunications, Multi-media systems and IT solutions. The company focuses on the Telecommunications, Multi-media and Information Technology (TMT) industries and employs more than 3 580 employees in South Africa and abroad.About Bytes Technology GroupBytes Technology Group (Bytes), a principal subsidiary of JSE-listed Altron, is a federation of leading IT companies. It operates in South Africa with operations in several other African countries, the United Kingdom and the Middle East. Its South African operations are part owned by leading empowerment group, Kagiso-Tiso Holdings.Sustainable and constant growth through strategic acquisitions has enabled the group to provide unlimited solutions to customers and become a leader in the IT field. It has a multitude of products and solutions, technical skills and specialised services that support enterprise-wide IT infrastructure and telecommunications in a wide range of industries.About Allied Electronics Corporation LimitedAllied Electronics Corporation Limited (Altron) (www.altron.com), through its principal subsidiaries, Allied Technologies Limited (Altech), Bytes Technology Group (Pty) Ltd (Bytes) and Power Technologies (Pty) Ltd (Powertech), is invested in telecommunications, power electronics, multi-media and information technology. The Altron group employs more than 12 500 employees globally.For further information please contact:Shenanda Janse van RensburgGroup Executive: Marketing, PR & Communications – Altech Head OfficeTel: +27 11 715 9031Email: sjvrensburg@altech.co.zawww.altech.comwww.bytes.comwww.altron.comJSE code: ATN and ATNP