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ALLIED ELECTRONICS CORPORATION LTD - Trading Statement

Release Date: 31/01/2013 16:47
Code(s): ATN     PDF:  
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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 company’s outlook statement contained in its 2012 interim
results announcement and are advised as follows:

•    Bytes has continued to perform well during the last six months, producing results
     broadly in line with our expectations;

•    Powertech has experienced difficult trading and operational conditions during the
     second half of the current financial year. Volumes in the cables group have been
     depressed and pricing pressures have increased, negatively affecting operating
     margins. Disruptions due to the nationwide transport sector strike in September 2012
     also negatively impacted the major operations within the Powertech group; and

•    Altech’s performance since the half-year has not improved, largely as a result of on-
     going challenges in its East and West African businesses. Although the transactions
     relating to Altech’s telecommunications network interests in East Africa, as more fully
     disclosed in the SENS announcement released by Altech on 28 January 2013, will
     remove operating losses from the Altron group’s results going forward, Altron
     anticipates that there will be an estimated loss of R666 million realised at Altech on the
     disposal of this business. The transactions between Altech and Liquid are subject to
     conditions precedent including Kenyan Competition Authority approval. If the effective
     date of the transactions occurs in the following financial year, R352 million of this loss
     will be recognised as an impairment of assets in the current financial year, while the
     remaining R314 million of this loss will only be recognised on the effective date of the
     transactions as it arises on the release of the foreign currency translation reserve. This
     latter amount will not impact on Altech’s shareholders’ equity. Should the transactions
     become effective during the current financial year ending 28 February 2013, then the
     full amount of the estimated R666 million will be recorded as a loss on sale. Both of
     these amounts will vary depending on factors such as foreign exchange rates, working
     capital movements and operating losses through to the effective date of the
     transactions. Altron shareholders will bear 61.5% of these losses.

Accordingly, shareholders are advised that a reasonable degree of certainty exists that the
company’s basic earnings per share for the year ending 28 February 2013 are expected to
be more than 100% lower as against the previous corresponding period, predominantly as a
result of the impairments in the first half at Altech, as well as the aforementioned losses
arising from the Altech East Africa transactions. Headline earnings per share for the year
ending 28 February 2013 are expected to be more than 20% lower as against the previous
corresponding period.

A further trading statement will be issued in due course to update shareholders on the
progression of the transactions between Altech and Liquid and to provide earnings forecast
ranges for earnings per share and headline earnings per share as required by the JSE
Listings Requirements.

Altron’s annual financial results for the financial year ending 28 February 2013 are expected
to be announced on or about 8 May 2013.

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

By order of the board.


Johannesburg
31 January 2013


Sponsor
Investec Bank Limited

Date: 31/01/2013 04:47:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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