As JSE-listed technology company Allied Electronics (Altron) celebrates the halfway mark of its five-year plan, CEO Mteto Nyati, who took the helm nearly three years ago, indicates that the next phase for the company will focus on geographic expansion.

Two-and-a-half years since implementing the One Altron strategy, the group is now discussing a renewed strategy to continue the momentum of the initial five-year growth plan, with management “eager and looking forward” to the next chapter of the company’s journey.

“Over the last three months, I have been engaging management . . . and obtaining feedback [for the next growth strategy],” Nyati tells Engineering News, noting that the next phase will be about expanding geographically.

Offshore revenue contributes 49% of total Altron revenue; however, the group’s aim is to diversify further out into Europe and Asia, says Nyati, pointing out that entry into Malaysia is already under way.

“Today, 49% of our business comes from offshore. Tomorrow, that may be 70% of our business.”

In 2015, Altron, once a family-owned and -managed group, fell on hard times, sliding into the red after the faltering performance of several units sent headline earnings per share plunging 50%.

In an interview with Engineering News in May 2017, after the JSE-listed Altron had successfully transitioned to an independent management structure, Nyati promised to aggressively drive a strategy aimed at returning the company to its previous fortunes.

Altron had made “good progress” in navigating the difficult environment which had pushed the group into losses, with earnings recovering somewhat as it repositioned itself in the information technology and telecommunications space.

Now Altron remains on track to achieve its five-year goal of doubling earnings before interest, taxes, depreciation and amortisation (Ebitda) by 2022.

Ebitda improved by 19% to R803-million during the six months ended August 31, with strong Ebitda growth of 31% from the group’s digital transformation operations.

The group’s Ebitda margin on reported revenue increased to 9.4% during the period under review, compared with 8.5% in the prior half-year period.

The Ebitda growth for the half-year was largely attributable to organic growth.

A critical part of Altron’s success, Nyati believes, is the transformed culture of the company.

Altron’s purpose of delivering “innovation that matters” is attached to the company’s ambitions of “being a great place to work for all; delivering leading returns for shareholders; providing exceptional customer service; and doing good business while doing good”

Layered on top of that is a singular set of values, namely openness, honesty and integrity; collaboration across teams; embracing diversity and inclusion; getting things done and enjoying doing it; and passion for employees, customers, partners and communities.

He believes he has been successful.

“The biggest achievement [for me] is giving our employees a sense of direction, knowing where the company is going and creating an environment for them where they are excited to come to work,” Nyati says.

The environment enables employees to contribute to the growth of the company, with a resultant significant improvement in customer service.

“We continue to stay focused on delivering innovation that matters through technology solutions and services that deliver impact with tangible results for businesses and have positive societal impact,” he continues.

“Innovation is at the core of who we are. We have identified several areas where we would like to make a positive impact, including safety and security and healthcare management,” he concludes.