Altron Power Year-end Results 2015

Overall, Altron Power was severely impacted by a drastic decline in orders from Eskom and a 4 week NUMSA strike.

The Powertech Cables group continued to demonstrate positive progress, with a good recovery during the period despite the impact of the NUMSA strike. The Iberian operations were profitable indicating a recovery in that market. In the local operations, market share was gained in the informal sector. Larger volumes were achieved which improved the recovery of fixed costs.

Profitability at Powertech Transformers was particularly Affected by significantly reduced demand from Eskom and the month long NUMSA strike . The Booysens plant in Johannesburg was closed during the year with a non recurring charge of R23m. Transformers obtained designated product status which should benefit it once demand returns.

The Powertech Batteries Group performed satisfactorily, margins were under pressure due to an increasing lead price which could not easily be passed on to customers as well as ongoing competition from imports despite the weak rand. Post year?end import tariffs were raised from 5?15%.

Powertech System Integrators performance was disappointing with a delay in the start?up of key projects. Powertech QuadPro performed well particularly in Zambia. Some good collaborative initiatives took place together with Altron TMT.