CEO warns South African countries against staying in the countryArticle | May 9, 2012 – 6:38am | By Eki Toju

The Venter family

The CEO of Allied Electronics Corporation, Robert Venter, on Tuesday announced that his company had shut down its operations in Nigeria.

He further warned that other South African companies still doing business in the country were doing so at their own risk.

Allied Electronics Corporation was involved in the manufacturing of pre-paid voucher and banking cards. 

Venter made the announcement while presenting the company’s reports for February 2012. He said Altech’s overall revenue deteriorated due to severe loss in the East and West African branches. 

“We have been based in Lagos but we are now disposing of that business. We still see much value in West Africa though,” he said.

Venter, while lamenting his misfortunes in Nigeria, however emphasised their determination towards growth, adding that the company was still ready to explore any continent in which it sees potential.

He said the company recorded a 16% decline per share to 187 cents, which led to ordinary dividend of 92 cents been declared as against that of 108 cents a year ago. 

The profit grew by 3% at R23.56 billion but after all expenditure, it reduced by 7% to R1.95 billion while operating profit before capital items was 9% lower at R1.38 billion.

However, gains before tax also fell to R398 million; the group therefore reported a loss of R79 from a profit of R699 million a year ago, as a result of poor sales in its East and West African segments. 

Altron is the second SA Company that is leaving the country; Telkom left during the first quarter of last year. 

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