Altron says turnaround is ‘complete’ as earnings surge
The company’s conservative approach to managing its debt seems to be a sound strategy, analyst says
Altron’s turnaround is complete, CEO Mteto Nyati said on Thursday after the technology group said full-year earnings rose about a quarter. Once a JSE top-40 stalwart, Altron lost favour with investors after a series of strategy blunders. Managerial missteps under founder Bill Venter’s heirs, Robbie and Craig, eventually drove Altron, and its one-time listed subsidiary Altech, from the JSE’s blue-chip index before its recent resurrection at the hands of CEO Mteto Nyati. The company’s market value slipped from a high of R15bn in 2007 — at the time it was more valuable than Aspen Pharmacare — to just R1.7bn in less than a decade.
But its fortunes have changed since Value Capital Partners (VCP) invested R400m in December 2016 and Nyati took over as CEO in April 2017. David Oberholzer, equity analyst at Nitrogen Fund Managers, said the market had reacted positively to the company’s results. "Their balance sheet seems to be in good health," he said. "The company’s conservative appro...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.