ALLIED ELECTRONICS CORPORATION LIMITED - Altron Trading Statement

2017-09-13 09:00:00

AEL 201709130015A
Altron 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 Trading Statement

In terms of the Listings Requirements of the JSE Limited (“JSE”), a company listed on the
JSE is required to publish a trading statement as soon as they are satisfied that a reasonable
degree of certainty exists that the financial results for the period to be reported on next will
differ by 20% or more from the financial results of the previous corresponding reporting
period.


Shareholders are advised that a reasonable degree of certainty exists that in respect of the
company’s total operations (continued and discontinued) the headline earnings per share for
the six months ended 31 August 2017 is expected to be a profit of between 36 cents – 42
cents (between 16% and 36% higher as against the previous corresponding period (a profit
of 31 cents)). Basic earnings per share is expected to be a profit of at least 20 cents (as
against the previous corresponding period profit of 6 cents).


In line with the strategy of refocusing the Altron group and consistent with the prior period,
the financial results for the six months ended 31 August 2017 have been split between
continuing and discontinued operations in accordance with IFRS criteria. In this regard, the
entire Powertech group, Altech Autopage and Altech Multimedia continue to be classified as
discontinued operations for reporting purposes.            This further disclosure provides
shareholders with insight into the performance of the core and non-core operations within the
Altron group.


On a normalised basis, both EBITDA and headline earnings in the continuing operations are
expected to show growth in excess of 10%. The normalisation relates to significant once-off
restructuring costs in the current period which will reduce overheads going forward, and the
results of businesses closed in the prior corresponding period.


Prior to the normalisation adjustments referred above, headline earnings per share for the
company’s continuing operations for the six months ended 31 August 2017 is expected to be
between 45 cents – 47 cents (between 13% and 17% lower as against the previous
corresponding period (54 cents)).     EBITDA for continuing operations is expected to be
broadly in line with the previous corresponding period despite the strengthening of the Rand
which has reduced the contribution from the offshore operations, while headline earnings per
share has reduced due to non-trading items as well as the increased number of shares in
issue following the removal of the control structure and the issue of shares to Value Capital
Partners for R400 million in April 2017. Basic earnings per share is expected to be between
41 cents – 45 cents (between 16% and 24% lower as against the previous corresponding
period (54 cents)).


In respect of the company’s discontinued operations the headline earnings per share for the
six months ended 31 August 2017 is expected to be a loss of between 5 cents – 9 cents
(between 61% and 78% better as against the previous corresponding period (a loss of 23
cents)). Basic earnings per share is expected to be a loss of between 14 cents – 22 cents
(between 54% and 71% better as against the previous corresponding period (a loss of 48
cents)).


Altron’s interim results for the financial half-year ended 31 August 2017 are expected to be
announced on or about 25 October 2017.


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


By order of the board.


Johannesburg
13 September 2017


Sponsor
Investec Bank Limited

Date: 13/09/2017 09:00:00 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.