Altech

Source: Technology Digital

Date :03/07/2008 16:14:24

Fingers on the pulse

Written by Ty Campbell and Produced by Aaron Wells

Established in 1965, Altech, a member of the Altron group, is involved in the design, development, manufacture, installation and distribution of telecommunications equipment, multimedia systems, IT solutions, electronic components, cellular telephony and industrial electronic products. There is a strong focus on the convergence of these technologies and Altech is now developing an awareness of future global demands.

Promote Innovation

The Altech group, which is a key player in the arena of technology solutions, has three core divisions: telecommunications and wireless communications, multi-media electronics and enhanced information technology. Each division provides a range of specialised yet complimentary products and services that can operate as a stand-alone service and supply a fully integrated end-to-end solution.

Today, Altech solutions help 16,000 customer companies around the world eliminate paper use and enhance work processes to deliver information more efficiently. The group has a work force of over 5000 and continues to strengthen.

Craig Venter, the Chief Executive Officer, is not content with resting on its laurels of a 20 percent compound growth rate over the past 10 years and states how “Altech is still looking for new worlds to conquer.”

He is promoting awareness of broadband and offshore developments. He explained how “broadband may become a fourth division for the group, supplementing the present trio of telecoms, multimedia and electronics, and IT.”

Altech invests heavily in to east Africa, having bought a 51 percent stake in two Kenyan and one Ugandan technology companies for £40million in March this year. It also has interests in Rwanda. Craig Venter told Reuters in an interview: “We ourselves are pouring in a lot of money. The profitability of this investment is about 10 percent of Altech’s overall profitability ... but I see that contribution growing to maybe 30 to 40 percent over the next three to five years or so.”

To achieve its growth target, Venter said Altech would invest in infrastructure. It has a 10 percent stake in a Kenyan government project to build a 5,000km (3,100 mile) cable linking the port of Mombasa with United Arab Emirates.

Techno-logic Trends

Altech has signed up as the distributor for Taiwanese computer maker Shuttle. Under the arrangement, Altech would be distributing the company’s line of “XPC”, small form factor bare-bones PCs. The products and services are designed and customised to suit each network operator’s unique technical and commercial requirements. Altech is a leading supplier of integrated set-top box, interactive software and after-sales service solutions to the global digital pay television industry. The group celebrates a rich heritage in the professional and wholesale audio industry with a vast history of technological modernisation.

Progressive Revenue

In the past year Altech has witnessed expansion within all sections of the group and high share profits. It announced results for the financial year ending 29 February 2008 with headline earnings per share improved by 23 percent to 511 cents. Revenue increased by 22 percent to R8.2billion, and operating profit by 17 percent to R664million.

Net asset value per share increased from R18.63 to R20.26 with cash balances of R1591million, reflecting the strength of Altech’s balance sheets. Return on shareholders’ equity remained strong, increasing from 22.7 percent to 25.4 percent. A dividend of 288 cents per share was declared, representing an increase of 20 percent.

Reap rewards

Altech was a leading group in the prestigious Technology Top 100 Awards, held in February 2008 at the University of Johannesburg. The event was hosted by the Da Vinci Institute for the Management of Technology and Innovation under the auspices of the Department of Science and Technology, with Altech winning three Excellence awards.

The group walked away with the highest accolade of the evening, namely the ‘2007 Minister’s Award for Overall Excellence’. The award recognises the excellence across Altech’s divisions and credits the disciplines that are needed to keep the group at the forefront of its market.

The Technology Top 100 Awards, which are recognised as the premier business excellence awards in South Africa, are regarded by the Minister of Science and Technology, Mr Mosibudi Mangena, as a celebration of excellence of truly South African innovation.

More than 200 entrants participated in this year’s stringent submission and adjudication process, highlighting the competitive and budding nature of the technology industries.

Craig Venter, CEO, is no stranger to such accolades having previously received the ‘2006 Minister’s Award for Overall Excellence’. Venter stated: “We are extremely proud of Altech’s incredible achievement. The group has become one of South Africa’s premier platforms; a talented and significant contributor to the country’s economy through technology.” He added, “Altech remains committed to the development of technology both in South Africa and globally, and will continue to nurture the talent of its people as well as developing skills in the ICT sector.”

Steve Sidley, Altech’s Chief Technology Officer, said “the wide recognition given by the Technology Top 100 Awards adjudication panel across a number of our group companies is testament to not only Altech’s technological prowess, but extends further into our management of systems, people and processes. We are extremely proud of the people who make this happen.”

Stimulating Evolution

Strong partnerships with international principals ensure that the group has on-going access to the latest worldwide technologies, while the group’s own research and development programmes actively encourages and promotes internal technology advances. The goals for the future lie in achieving a global strategic position in the telecommunications, multi-media and information technology (TMT) environments.

This will be accomplished through a focused range of activities, including the development and ownership of intellectual property rights and provision of value-added products, services and solutions driven by convergence.

Altech continues to extend its share profits and expand in magnitude by offering competitive sale prices and focus on raw costs. The modern client may be cutting back on furniture, fashion, eating out, renovation and holidays but interest in home and business electronics will always remain strong during times of economic decline.

The future of Altech looks robust as they offer outstanding and exemplary technology services and relentlessly pursue an ambition to be a leader in every sphere in which it operates, endeavouring to enrich its stakeholders.

Click here to view the corporate brochure on Altech