Altron remains on track to double its EBITDA (earnings before interest, tax, depreciation and amortisation) by 2022 financial year, the CEO the JSE-listed technology firm said.
“The expected outcome of our five-year plan was to provide leading returns for our shareholders – over the past three years our total shareholder return of 167% ranks us as the best-performing ICT company in South Africa,” Mteto Nyati, disclosed in the company’s annual report.
Altron is delivering on the promise of shareholder value, he said.
“We remain on track to double our EBITDA by the 2022 financial year,” Nyati explained.
“Altron has not deviated from the One Altron strategy, proving that it was the correct one to follow.”
He added that the company is looking to remain focused in Africa, serving its more than 20 000 customers and focusing on our chosen growth areas of cloud, data analytics, IoT and security.
The turnaround of the business is complete
Three year ago, Altron created a five-year roadmap called the One Altron strategy, prioritising revenue growth, improving profitability, transforming the customer experience and employee excellence.
“All indications are that this strategy will be fully implemented ahead of schedule,” said Nyati.
Through its strategy, Altron has been able to penetrate key potential customers it targeted. The most significant win from a collaborative point of view was at Standard Bank, where at least four of our divisions will be collaborating to provide services to one of the country’s largest financial services players through a single point of contact, said Nyati.
The collaborative strategy has also led to sizeable contract awards from Capitec, Coca-Cola Beverages Africa and Barloworld.
“Having reached several milestones in the 2020 financial year, we now regard the turnaround of the business as complete,” said Nyati.
“We are turning our attention to the last stages of the One Altron strategy, and the formulation of the next driving strategy for the group.”
The company has kick-started strategy sessions with its leaders, from first-line managers to executives, in the first move toward creating a followon from One Altron beyond the 2022 financial year.
“We are in no way shifting focus from the final stages of our One Altron strategy; to secure the future of the Altron group we need to hone our definition of what Altron will be known for so we can ensure that we build capacity in the right areas,” said Nyati.
“Altron faces immediate challenges in the effective integration of geographically disparate operating units. We will need leaders who have experience in managing truly global companies and our human resources team will be tasked with building capability wherever we go.”