JSE-listed Allied Electronics’ continuing operations delivered results in line with expectations in the six months ended August 31, despite difficult local economic conditions, a strengthening currency and one-off costs associated with the group’s restructuring processes.

Speaking at a presentation of the group’s financial results presentation, in Johannesburg, on Thursday, CEO Mteto Nyati said the company was operating in “tough times”.

During the six months, the strengthening of the rand against the pound had a significant impact on the group’s financial performance and it has, therefore, reported its results on a constant currency basis.

On a constant currency basis, revenue for the continuing operations grew by about 5% to R6.8-billion, while earnings before interest, taxes, depreciation and amortisation (Ebitda) increased by 19% to R501-million.

"We are working on our goal to deliver consistent double-digit growth rates at the Ebitda level," Nyati said.

Normalised and constant currency headline earnings increased by 27% to R209-million, while headline earnings a share were up by 16% to 57c.

The company divested some of its noncore assets during the period and reduced its exposure to the manufacturing sector, which, he said, would most likely see net debt reduced to R1.1-billion on conclusion of the disposals.

"The disposal of the remaining noncore assets remains a priority for the business to release further capital to strengthen the balance sheet and enable further investment in the core information and communications technology (ICT) assets."

Altron, Nyati noted, was looking to expand its African footprint and would be appointing a new MD for Africa to drive this growth. 

"Altron continues to make good progress on its strategy to turn the group into a leading ICT player and grow its international footprint in selected markets. Focus areas for growth going forward are learning and development, health tech, safety and security, and fintech," he said.