http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.01Change: -0.01
R/$ = 11.58Change: -0.14
Au 1206.34 $/ozChange: -3.01
Pt 1173.50 $/ozChange: -4.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Sep 28, 2012

Altech progresses resolutions for underperforming assets

Back
Africa|Allied Technologies|Altech East Africa|Altech West Africa|PROJECT|Project Management|Africa|Nigeria|Product|Products|Service|Solutions|Craig Venter|Operations|East Africa|West Africa
Africa|PROJECT|Project Management|Africa||Products|Service|Solutions||Operations|
africa-company|allied-technologies|altech-east-africa|altech-west-africa|project|project-management|africa|nigeria|product|products|service|solutions|craig-venter|operations|east-africa|west-africa
© Reuse this



JSE-listed Allied Technologies (Altech) said on Thursday that it continued working towards solutions for its underperforming East and West African operations.

The group, which has been weighed down by the operations over the past 18 months, was confident that good headway has been made since the 2011 financial year-end.

CEO Craig Venter, speaking at Altech’s 2012 financial year interim results presentation, said that significant corporate involvement and the implementation of internal remedial measures in 51%-owned Altech East Africa visibly improved operations, but the financial performance was not yet seen.

The company has initiated formal processes to find a partner for the historically profitable division, as Venter believed that this would accelerate the turnaround. He pointed out that the operations brought in profit of R30-million in the first year of entry and another R100-million the year after, but the “wheels came off” in the third year.

Venter outlined a number of factors contributing to the lower performance, including management challenges and high staff turnover, as well as poor customer service and network reliability issues leading to loss of key customers.

The parent company also based key decisions on inaccurate and nonfactual information provided by East Africa’s management.

Further, he said, former management failed to adapt to the group’s strategy, management controls and governance were not adhered to and project management, execution and quality controls were insufficiently implemented.

Venter said that Altech had installed a new management team, which was making headway.

He also pointed to the group’s underestimation of the risks involved in entering a new geographical area and new area of activity, as well as the capital- and labour-intensiveness of the business.

“The network operations in East Africa continue to be challenged; however, there have been some positive improvements with regard to network stability and data centre performance over this period [six months to August 2012],” he said.

Meanwhile, Altech was disposing of its 75% shareholding in the struggling greenfield start-up operation Altech West Africa, in Nigeria.

The West African operation, which was started in 2005 and was highly profitable for five years, underperformed during the past 18 months on the back of increased competition in the low-priced nonsecure paper recharge voucher market and a reduction in demand for secure recharge vouchers.

The firm was further impacted by delays in receiving customer requirements for plastic-chip card products, high top and senior management turnover, unanticipated product technology changes, the Nigerian government’s prohibition on imports of recharge vouchers and the expiration of the company’s pioneer tax status.

The sale of the operation, which was deemed noncore within the Altech group, would be earnings enhancing and the proceeds of the sale would be redeployed into high-growth areas within the Altech portfolio.

Edited by: Mariaan Webb
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other ICT News
More than a century following the invention of the automobile, the horseless carriage continues to evolve. Following an array of developments over the years, such as power steering, run-flat tyres, turbo engines, windscreen wipers, air-conditioning, radio and music...
PROCESSING PERSONAL INFORMATION The PoPI Impact Self-Assessment tool helps SMEs understand the requirements of the PoPI Act regarding the collection and processing of clients’ personally identifiable information
An increasing number of small and medium-sized enterprises (SMEs) are benefiting from information security and privacy professional services firm 4Di Privaca’s Protection of Personal Information (PoPI) Impact Self-Assessment service tool, says company CEO Drew van...
With an extensive turnaround behind it, fleet management and vehicle tracking group DigiCore Holdings was cautiously optimistic as it entered the final stretch of the year still in the black. The JSE-listed group on Thursday said it would now focus on delivering...
Article contains comments
More
 
 
Latest News
Updated 37 minutes ago JSE-listed Reunert on Friday announced that its CFO Manuela Krog had resigned and that outgoing Afrox FD Nick Thomson had been appointed as CFO and FD. Krog, who resigned to spend more time with her family, would step down as CFO on March 31, but would continue to...
Updated 51 minutes ago Through its climate investment fund (CIF), the African Development Bank (AfDB) now supports one regional and 25 national investment plans across Africa.
Updated 53 minutes ago China’s investment in African resources remains at a relatively early stage and is likely to increase further over the next decade, despite the economic slowdown in the world’s second-largest economy, reports South African financier Standard Bank. China’s economy...
More
 
 
Recent Research Reports
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
 
 
 
 
 
This Week's Magazine
National flag carrier South African Airways (SAA) is in an advanced stage of renegotiating its deal with European airliner manufacturer Airbus to acquire A320 single-aisle (or narrow body) aircraft. The aim is to replace ten of the aircraft still on order with five...
Worldwide, the main thrust in the ports industry over the past decade or more has been to increase efficiency. Traditionally, ports have been run by engineers and mariners and, in the past, increasing a port’s capacity was achieved by expanding the harbour. “That has...
What do you do when an elephant has a toothache? You call Dr Gerhard Steenkamp from the University of Pretoria’s (UP’s) faculty of veterinary science, Onderstepoort, one of only two elephant ‘dentists’ in the world.
The 2015 Sanlam/Business Partners Entrepreneur of the Year (EOY) competition was launched earlier this month in Johannesburg, with the main focus on creating and inspiring entrepreneurs to create jobs and boost the economy.
In a recent letter to the editor that I sent to Engineering News (Concerns regarding South African portion of Square Kilometre Array) and in a follow-up article elaborating further (We must start preparations to build our own synchrotron light source), I stated my...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96