ALLIED ELECTRONICS CORPORATION LTD - Trading Statement

Trading Statement

Allied Electronics Corporation Limited
(Registration number 1947/024583/06)
(Incorporated in the Republic of South Africa)
Share Code : ATN       ISIN: ZAE000029658
Share Code : ATNP ISIN: ZAE000029666
(“Altron” or “the company”)


Altron Trading Statement


Shareholders are referred to the Altron trading statement published on SENS on 20 February
2014 and are advised as follows:


 *   The Altron TMT division, established following the successful acquisition of the Altech
     minorities in August 2013 and consisting of the Altech and Bytes businesses, has
     performed well, exceeding management’s expectations.Though the reorganisation
     process is on-going, management is extremely pleased with the progress made to date.
     In particular, Altron TMT has secured several material tenders during the past six month
     period, indicative of the exciting cross sell/up sell and collaboration opportunities that
     have arisen as a result of the integration of Altron TMT. The performances of the
     underlying businesses can be summarised as follows:


     o     Bytes has continued to perform well despite its high base. While gross margins
           have remained under pressure, revenue has shown robust growth both in the local
           and international operations;
     o     Altech has recovered strongly following the disposal at the end of the last financial
           year of its loss making African operations.While revenue growth has been
           relatively muted, profitability has recovered strongly on pleasing performances out
           of its main operations and despite a number of significant once off costs;


 *  Altron Power consisting of the Powertech businesses has also made a strong recovery
    from last year. Despite what remain challenging and uncertain economic conditions,
    Powertech has delivered pleasing revenue growth and significantly improved
    profitability, though margins remain below historical levels.


Accordingly, shareholders are advised that a reasonable degree of certainty exists that the
company’s headline earnings per share for the financial year ended 28 February 2014 is
expected to be between 35% - 45% higher as against the previous corresponding period.
Basic earnings per share for the financial year ended 28 February 2014 is expected to be
between 280% (178 cents per share) and 300% (198 cents per share) higher as against the
previous corresponding period (loss of 99 cents per share).


Shareholders are further advised that Altron’s normalised headline earnings per share is
expected to be between 45% - 55% higher as against the previous corresponding period.
The normalised headline earnings per share disclosure adjusts headline earnings for various
once off costs that have arisen in the current financial year, which are either non-operational
or are associated with accessing benefits that will only be realised in subsequent reporting
periods.


Altron’s annual financial statements for the financial year ended 28 February 2014 are
expected to be announced on or about Wednesday, 14 May 2014.


This trading statement has not been reviewed or reported on by Altron’s external auditor.


By order of the board.


Johannesburg
03 April 2014



Sponsor
Investec Bank Limited

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