ALLIED ELECTRONICS CORPORATION LTD - Altron trading statement

Altron 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 2014 year-end
results announcement and are advised as follows:


-    Altron TMT (comprising Altech and Bytes’ telecommunications, multi-media and IT
     businesses) produced pleasing results during the period under review, showing a
     growth in headline earnings. The integration of Altech and Bytes has yielded further
     significant benefits during the last six months. Altech Autopage Cellular has seen a
     decline in its profitability during the last six months, but a stronger second half is
     anticipated. Strong performances were however recorded at Altech Netstar and the
     Bytes businesses;
-    Altron Power (comprising the Powertech group’s businesses) experienced challenging
     trading conditions during the last six months. The four week NUMSA strike in July
     severely impacted the business and this was exacerbated by the preceding mining
     sector strike. Much of the decline was experienced in the Transformers business which
     also suffered from low demand and productivity issues. Encouragingly, Altron Power’s
     cables business posted growth in both revenue and earnings compared to the previous
     corresponding period;
-    Altron Corporate incurred a higher interest charge during the last six months due to the
     borrowings taken on to acquire the Altech minorities in August 2013.


Accordingly, shareholders are advised that a reasonable degree of certainty exists that the
company’s headline earnings per share for the financial half-year ended 31 August 2014 is
expected to be between 10% and 16% lower as against the previous corresponding period.
Basic earnings per share for the financial half-year ended 31 August 2014 is expected to be
between 21% and 31% lower as against the previous corresponding period.


Shareholders are further advised that Altron’s normalised headline earnings per share is
expected to be between 18% and 24% lower as against the previous corresponding period.
The impact of the NUMSA strike accounts for a significant portion of the decline in earnings.
The normalised headline earnings per share disclosure adjusts headline earnings for various
once off costs that arose in the prior financial year, which were either non-operational or
associated with accessing benefits that would only be realised in subsequent reporting
periods.


Altron’s interim financial results for the half-year ended 31 August 2014 are expected to be
announced on or about Wednesday, 8 October 2014.


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


By order of the board.



Johannesburg
23 September 2014



Sponsor
Investec Bank Limited

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