To view the PDF file, sign up for a MySharenet subscription.

ALT - Allied Technologies Limited - Press Release - East and West African

Release Date: 13/04/2012 15:31
Code(s): ALT
Wrap Text

ALT - Allied Technologies Limited - Press Release - East and West African Operations Affect Altech Performance Allied Technologies Limited Member of the Altron Group Incorporated in the Republic of South Africa (Registration number 1946/020415/06) Share Code : ALT ISIN Number : ZAE000015251 ("Altech" or "the company") Date: 13 April 2012 EAST AND WEST AFRICAN OPERATIONS AFFECT ALTECH PERFORMANCE JSE listed Allied Technologies Limited (Altech) today issued a Trading Statement to advise its shareholders that the company`s headline earnings and adjusted headline earnings per share for the financial year ended 29 February 2012 are expected to be between 24% and 30% lower than the equivalent figures for the financial year ended 28 February 2011 ("the previous financial year"). These reductions are primarily due to continued poor results in Altech`s East and West African operations. Altech Management is investigating remedial measures. Certain of the operations in East Africa experienced a tough trading period with financial performance below expectations with a number of challenges, including currency fluctuations, high inflation rates and interest costs, sharp drops in broadband pricing, network instability due to fibre breaks and undersea cable breaks. Exposure to currency fluctuations has been reduced and steps are being taken to address certain underperformance issues. New management is focused on resolving operational and financial challenges and strengthening the positioning of the businesses in the region. A green-field start-up operation by Altech in Nigeria, Altech West Africa was a strong profit performer for five years. Its recent trading performance on paper recharge vouchers was affected by mobile operators` ability to offer cheaper alternatives. In addition, its five year "pioneer " tax status in Nigeria recently ended and the Nigerian Government has lifted the prohibition on imports of recharge vouchers, leading to increased competition. Altech has decided to impair fully the goodwill in respect of the West African operations and to impair the carrying value of the investment in the East African operations. These impairments will result in a loss in basic earnings per share, which is expected to be between 281 cents and 302 cents compared to a profit of 216 cents the previous financial year. The other operations within Altech performed to expectations for the financial year ended 29 February 2012. Altech Multimedia returned to profit after several years of losses. Six out of the seven acquisitions made and joint ventures initiated during the past three years have shown satisfactory profit performances and the remaining one has now been successfully integrated into Altech Autopage Cellular. In addition, the three significant empowerment transactions implemented over the past 18 months, in Altech Multimedia, Altech Radio Holdings and Altech Netstar, have assisted the Altech Group in achieving Level 3 empowerment status. The full results for the period ended 29 February 2012 are expected to be published on SENS on or about 25 April 2012. ENDS Notes to Editors: About Allied Technologies Limited Allied Technologies Limited (Altech) is listed on the Johannesburg Stock Exchange (JSE). The company focuses on the Telecommunications, Multi-media and Information Technology (TMT) industries with a global footprint in 14 countries and employs more than 4 000 employees. As a leading South African multi-billion rand group, Altech is involved in the design, development and convergence of Telecommunications, Multi-media systems and IT solutions. For further information please contact: Shenanda Janse van Rensburg Group Executive: Marketing, PR & Communications - Altech Head Office Tel: +27 11 715 9031 Mobile: +27 84 777 1977 Email: sjvrensburg@altech.co.za www.altech.com JSE code: ALT Date: 13/04/2012 15:31:01 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.

Share This Story