http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.21Change: 0.38
R/$ = 11.52Change: 0.14
Au 1209.80 $/ozChange: 13.71
Pt 1212.50 $/ozChange: 12.00
 
 
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 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
JSE-listed Blue Label on Friday said it had terminated talks with the undisclosed company that had made a nonbinding expression of interest to acquire all the issued shares in the telecommunications group in October. Blue Label, which retracted its cautionary, stated...
MATT BARKER Wireless networks should enable users to engage and must provide relevant information to them based on their activity and location
The inclusion of Bluetooth to provide sub-three meter accuracy and heightened functionality for users is one of the ways to change existing wireless networks into engagement networks. An engagement network differs from common wireless networks in that it enables the...
The converged CTR microwave router integrates legacy time-division multiplexing, Ethernet and Internet protocol/Multiprotocol Label Switching (IP/MPLS) network layers to enable cellular base stations to be multi-function hubs for delivery of new services, says...
Article contains comments
More
 
 
Latest News
Lumwana, Zambia
Canada’s Barrick Gold Corp will suspend operations at its Lumwana copper mine, in Zambia’s Northwestern province, after the country enacted legislation that raised the royalty rate on openpit mining operations from 6% to 20%. TSX- and NYSE-listed Barrick, the world’s...
The Labour Court in Johannesburg has set aside the 2011-2014 metal sector wage agreement, the National Employers' Association of SA (Neasa) said on Thursday. The 2011-2014 wage deal was the result of an agreement between the Steel and Engineering Industries...
South African cement firm PPC on Wednesday named a mining industry veteran as chief executive, ending a three-month leadership vacuum that has hit its shares. PPC's former CE Ketso Gordhan abruptly resigned in September after clashing with the board. He then...
More
 
 
Recent Research Reports
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.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
 
 
 
 
 
This Week's Magazine
South Africa remains an important manufacturing and export platform for Ford Motor Company, says executive chairperson Bill Ford. However, he adds that other countries on the continent are “becoming interesting”, and that the US carmaker is casting its net wider for...
TO BE PHASED INTO SERVICE The first MeerKAT dish, with another 63 to come
Germany’s Max-Planck-Society (MPG) and the Max-Planck-Institute for Radio Astronomy (MPlfR) are investing €11-million (about R150-million) into South Africa’s MeerKAT radio telescope array programme. The money will be used to design, build and install S-band radio...
Infrastructure spend in sub-Saharan Africa will grow from $70-billion in 2013 to $180-billion by 2025, says PwC capital projects and infrastructure Africa leader Jonathan Cawood. This is one of the findings of PwC’s Capital Projects & Infrastructure report on East...
Private-owned defence and aerospace manufacturer Paramount Group and the Ichikowitz Family Foundation unveiled its Anti-Poaching Skills and K9 Training Academy in Magaliesburg last month.
MATT BARKER Wireless networks should enable users to engage and must provide relevant information to them based on their activity and location
The inclusion of Bluetooth to provide sub-three meter accuracy and heightened functionality for users is one of the ways to change existing wireless networks into engagement networks. An engagement network differs from common wireless networks in that it enables the...
 
 
 
 
 
 
 
 
 
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