ALLIED ELECTRONICS CORPORATION LIMITED - Business Update and Trading Statement

Business Update and Trading Statement

Allied Electronics Corporation Limited
(Registration number 1947/024583/06)
(Incorporated in the Republic of South Africa)
Share Code: AEL        ISIN: ZAE000191342
Share Code: AEN        ISIN: ZAE000191359
(“Altron” or “the company”)


Altron Business Update and Trading Statement

Business Update

Shareholders are advised that following the business updates released by the company on
SENS on 14 March 2016 and 29 April 2016, the Altron group continues to make progress
regarding the implementation of its new strategic direction as previously communicated to
shareholders.


This has included the successful disposals of Altech Autopage Cellular to various of the
South African mobile network operators, as well as the sale of a majority equity interest in
Aberdare Cables to Hengtong.


In addition and as a result of several other disposals concluded throughout the Altron group
during the intervening period, Altron has managed to apply approximately R1.5 billion of
proceeds to reduce its historical debt to more acceptable levels. The Altron group continues
to explore various opportunities to further reduce its exposure to the manufacturing sector in
South Africa and refocus on its identified core businesses.


During the current financial year, the group’s core IT and Technology businesses have
produced a stable performance in what remains challenging macroeconomic conditions and
are expected to post results for the first six months in line with expectations.          The
performance of the core operations have been assisted by the realisation of the expected
head office cost savings.


Altron’s non-core businesses, which predominantly operate in the manufacturing sector,
have continued to experience difficult trading conditions, although we have seen the benefit
of the restructuring that occurred last year in several of these operations. In particular,
Altech UEC is once again generating EBITDA as a result of certain management
interventions. These factors have resulted in a significant reduction in the losses generated
from the discontinued operations.
Additional information regarding Altron’s operational performance, differentiating between
continuing and discontinued operations will be provided in a further trading statement to be
released in due course.


Trading Statement


Accordingly, shareholders are advised that a reasonable degree of certainty exists that the
company’s basic earnings per share for the financial half-year ended 31 August 2016 are
expected to be a profit of at least 1 cent per share as against the previous financial half-
year’s loss of 151 cents on a total earnings basis (at least 101% better than the prior period),
though various impairment reviews will only be concluded during the interim results process.
Headline earnings per share for the financial half-year ended 31 August 2016 are expected
to be a profit of at least 1 cent per share as against the previous financial half-year’s loss of
64 cents per share on a total operations basis (at least 102% better than the prior period).


A further trading statement will be released in due course to, among others, provide
shareholders with earnings forecast ranges for basic earnings per share and headline
earnings per share, as required by the JSE Listings Requirements.


Altron’s interim results for the financial half-year ended 31 August 2016 are expected to be
announced on or about 19 October 2016.


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




By order of the board.


Johannesburg
5 September 2016


Sponsor
Investec Bank Limited

Date: 05/09/2016 04:30:00 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.