Altech profits fall

Altech saw its profit fall for the six months ended August 31, 2010.

Releasing its interim results, the company reported a decrease in headline earnings per share to 206 cents from 292 cents a year earlier.

Operating profit came in at R361 million from R479 million in the previous comparable period.

Although certain market segments were affected by the global economic conditions, many companies within the group performed well; most notably Altech Fleetcall, Altech Card Solutions and recent acquisition, Altech NuPay, CEO Craig Venter said in a statement.

The company's strong cash position and balance sheet still left it in a good position to take advantage of investment opportunities.

"The group believes that performance for the second six months will be much improved on the first half-year as certain adverse factors which were specific to the period will not recur."

Looking to the future Altech would continue to diversify its income base within the technology, multi-media and information technology sector through globalisation, merger and acquisition activity and convergence opportunities.

"We have been highly acquisitive over the last 10 years, expanding the group significantly and implementing our strategy of a transition from a telecommunications and technology company to a converged services group," Venter said.

This would remain the strategy, but for the remainder of the financial year the group would focus specifically on Altech's transition to broadband and the globalisation of Altech Netstar and Altech UEC, he said.