There is an intriguing new investment team moving among the columns of the JSE stock prices that are expert, highly successful and unlike most investment teams.
Their company name is Value Capital Partners, and the team is made up of key sophisticated financial experts who analyse any company’s balance sheet that attracts their attention.
The company Value Capital Partners has been working on for the last few months is Altron, the telecommunications, multi-media, information technology and power electronics business.
Altron has a global footprint in its business.
Altron was on a downward trend for more than 8 years in terms of profit and share price to 2016 until Value Capital Partners got involved as a strategic and engaged shareholder.
The 2017 financial results were significantly better.
Despite a tough economic environment, Altron seems to have significantly improved its performance. The company has seen profits before tax of total operations improve from R376 million to R840 million and net debt reduced by 42% to sustainable levels.
Over the last year, since Capital Value Partners have been involved in decision making at Altron, the share price has moved from ~R5.40 to R11.36. A double improvement.
Altron has made good progress over the last year, repositioning the group in the information technology and telecommunications sector.
It has also divested of non-core assets which have brought Altron financial benefits.
One of the company’s strategic objectives was to transform the organisation from a family controlled business to one with an independent management structure. This has been successfully concluded under the guidance and leadership of the CEO, Mr Mteto Nyati, a member of Value Capital Partners.
“The R400 million capital injection post year-end, following the introduction of Value Capital Partners as a new strategic partner, will be a catalyst in driving shareholder value creation by enabling the acceleration of Altron’s growth initiatives within its core information technology and telecommunications businesses,” says Altron. With the injection of R400 million, Value Capital Partners have negotiated management control of Altron.
“The disposal of the remaining non-core assets remains a priority in order to release further capital to strengthen the balance sheet and enable further investment in the core assets.”
Jeremy Woods trained for three years as a journalist on the Herts Advertiser, St Albans, in the U.K. Once qualified, he left England to work as a crime reporter on the Vancouver Sun in Canada. After three years, he worked for the Los Angeles Times as a trainee financial journalist, spending most of his time reading company accounts and finding publishable stories in them. He moved to South Africa and for the last five years in journalism worked for the Sunday Times, Business Times, as Investment Editor. He has also published a financial thriller called “Special Payments”, which was a best-seller on publication, and optioned three times for a film.