South African IT holding firm Allied Electronics reported a 12% rise in first-half headline earnings per share (EPS) on Tuesday and said it had halted an acquisition drive due to global financial turmoil.
The company, which owns a majority stake in IT firm Altech, said headline EPS rose 12% to 192 cents in the six months to end August while diluted adjusted headline EPS rose 16% — in line with its own forecasts.
But it said a slowdown in the building sector was impacting certain parts of its Powertech business, which provides technology to the construction sector.
That, combined with global financial market turmoil and potential pressures in South Africa, had prompted the company to halt an acquisition drive and focus on consolidating the business, extracting synergies and controlling costs, it said.
”The group has in recent months shifted its focus to one of consolidation,” Altron said in a statement. Altech in March bought a controlling stake in the digital network operations of a Kenyan IT firm, and has increased its holdings in South African businesses.
The company said revenue rose 19% to R13,169-billion. The company’s main investment, Altech, posted a 19% rise in first-half headline EPS last month and said it was well placed for real growth in the second half, even though most executives and analysts predict tougher business conditions in Africa’s biggest economy.
Headline EPS is the main profit gauge in South Africa and strips out certain one-off, financial and non-trading items. —