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Altron resumes dividends as restructuring pays off
Altron resumes dividends as restructuring pays off. The ICT group has paid its first dividend in over two years after selling non-core businesses and reducing debt
Altron has paid its first dividend in two years after a restructuring which saw it sell non-core assets and cut debt. The IT and electronics group says it's also made good progress in expanding its operations geographically and now generates 57% of its revenue offshore following three recent acquisitions.
The group's Powertech Transformers business was sold at the end of July and it's reached an agreement to dispose of Altech UEC/Multimedia, the last non-core control asset. This is expected to be wound up by the end of next month.
It says its improved performance over the last 18 months, which has resulted in top-line growth, improved profitability better working capital management and a much-improved balance sheet, has allowed it to resume dividends for the first time since February 2016.
Reporting back for the six months to end-August, revenue from continuing operations increased by 44% to R9.8 billion and continuing earnings before interest, tax, depreciation and amortisation rose 16% to R686 million. Normalised headline earnings per share jumped 25% to 71c a share and it's declared an interim dividend of 28c per share.
It cut net debt to R1.4 billion from R1.9 billion in February due to increased cash generation. Net debt was further reduced to R991 million once adjusted for the disposal of group assets and deferred receipts balances.
Altron remains well-positioned for continued growth and execution of its One Altron strategy of offering end-to-end solutions to its extensive customer base," the group said. "We continue to focus on organic growth, supplemented by selective acquisitions."
Its shares rose 1.2% to close at R16.90 yesterday.
Thank you to all those who managed to watch or attend our Interim Results presentation. If you missed the presentation, you can download it here: #AltronResults pic.twitter.com/VAnx2kNuKf
-- Altron (@AltronGroup) October 25, 2018
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By INCE|Connect NewsAltron resumes dividends as restructuring pays off. The ICT group has paid its first dividend in over two years after selling non-core businesses and reducing debt
Altron has paid its first dividend in two years after a restructuring which saw it sell non-core assets and cut debt. The IT and electronics group says it's also made good progress in expanding its operations geographically and now generates 57% of its revenue offshore following three recent acquisitions.
The group's Powertech Transformers business was sold at the end of July and it's reached an agreement to dispose of Altech UEC/Multimedia, the last non-core control asset. This is expected to be wound up by the end of next month.
It says its improved performance over the last 18 months, which has resulted in top-line growth, improved profitability better working capital management and a much-improved balance sheet, has allowed it to resume dividends for the first time since February 2016.
Reporting back for the six months to end-August, revenue from continuing operations increased by 44% to R9.8 billion and continuing earnings before interest, tax, depreciation and amortisation rose 16% to R686 million. Normalised headline earnings per share jumped 25% to 71c a share and it's declared an interim dividend of 28c per share.
It cut net debt to R1.4 billion from R1.9 billion in February due to increased cash generation. Net debt was further reduced to R991 million once adjusted for the disposal of group assets and deferred receipts balances.
Altron remains well-positioned for continued growth and execution of its One Altron strategy of offering end-to-end solutions to its extensive customer base," the group said. "We continue to focus on organic growth, supplemented by selective acquisitions."
Its shares rose 1.2% to close at R16.90 yesterday.
Thank you to all those who managed to watch or attend our Interim Results presentation. If you missed the presentation, you can download it here: #AltronResults pic.twitter.com/VAnx2kNuKf
-- Altron (@AltronGroup) October 25, 2018