ALLIED ELECTRONICS CORPORATION LIMITED - Altron Business Update and Trading Statement

Altron 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
 (“Altron” or “the company”)


Altron Business Update and Trading Statement

Business Update


Shareholders are referred to the company’s business update and trading statement released
on SENS on 7 March 2017 and are advised further as follows:-


   -       Following the recent appointment of Mr Mteto Nyati as chief executive, the group
           has announced the streamlining and simplification of its corporate and executive
           structures, which will be followed by a full review of its core businesses; and
   -       The group continues to focus on the disposal of its various non-core operations
           as going concerns in order to realise value for shareholders and expects to
           complete a number of these disposals in the first quarter of the new financial
           year.


Trading Statement


In line with the strategy of refocusing the Altron group and consistent with the prior period,
the financial results for the year ended 28 February 2017 have been split between continuing
and discontinued operations in accordance with IFRS criteria. In this regard, the entire
Powertech group, Altech Autopage, Altech Multimedia and Altech Node (only relevant for the
prior year) continue to be classified as discontinued operations for reporting purposes. This
disclosure provides shareholders with insight into the performance of the core and non-core
operations within the Altron group.


Shareholders are advised that a reasonable degree of certainty exists that in respect of the
company’s continuing operations the headline earnings per share for the financial year
ended 28 February 2017 is expected to be between 110 cents – 120 cents (between 5% and
13% lower as against the previous corresponding period (126 cents)). Basic earnings per
share is expected to be between 112 cents – 122 cents (between 7% and 16% higher as
against the previous corresponding period (105 cents)). Headline earnings per share in the
continuing operations have been adversely affected by higher interest charges caused by
higher borrowing costs attributed to the continuing operations as a result of the reduction in
the expected proceeds from the remaining disposals of the discontinued operations.
In respect of the company’s discontinued operations the headline earnings per share for the
financial year ended 28 February 2017 is expected to be a loss of between 40 cents – 50
cents (between 81% and 85% better as against the previous corresponding period (a loss of
271 cents)). Basic earnings per share is expected to be a loss of between 162 cents – 172
cents (between 52% and 55% better as against the previous corresponding period (a loss of
364 cents)).


In respect of the company’s total operations (continued and discontinued) the headline
earnings per share for the financial year ended 29 February 2016 is expected to be a profit of
between 60 cents – 80 cents (between 141% and 155% better as against the previous
corresponding period (a loss of 145 cents)). Basic earnings per share is expected to be a
loss of between 40 cents – 60 cents (between 77% and 85% better as against the previous
corresponding period (a loss of 259 cents)).


Altron’s annual financial results for the year ended 28 February 2017 are expected to be
announced on or about Thursday, 11 May 2017.


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


By order of the board.


Johannesburg
28 April 2017


Sponsor
Investec Bank Limited

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