Altron sees stronger earnings

Listed technology group, Altron says it expects headline earnings per share for the financial year ended February 2014 to be between 35% – 45% higher than the prior year.

For the year ended February 2013, Altron reported revenue of R25 billion, with HEPS at 136 cents.

Basic earnings per share is expected to be between 280% (178 cents per share) and 300% (198 cents per share) higher than a prior loss of 99 cents per share, Altron said.

Altron advised that normalised headline earnings per share is expected to be between 45% – 55% higher as against the previous corresponding period.

The normalised headline earnings per share disclosure, Altron explained, adjusts headline earnings for various once off costs that have arisen in the current financial year, which are either non-operational or are associated with accessing benefits that will only be realised in subsequent reporting periods.

Altron pointed out that the results would be its first since its acquisition of Altech’s minority shares in August 2013 and the establishment of the Altron TMT and Altron Power divisions.

The group said its Altron TMT division “has performed well, exceeding management’s expectations”.

It said that Altron TMT has secured several material tenders during the past six month period, indicative of the exciting cross sell/up sell and collaboration opportunities that have arisen as a result of the integration of Altron TMT.

Altron said that Altech has recovered strongly following the disposal at the end of the last financial year of its loss making African operations.

“While revenue growth has been relatively muted, profitability has recovered strongly on pleasing performances out of its main operations and despite a number of significant once off costs,” it said.

Altron’s IT Solutions business, Bytes performed well despite its high base.

“While gross margins have remained under pressure, revenue has shown robust growth both in the local and international operations,” Altron said.

Altron said that its power businesses has also made a strong recovery from last year.

“Despite what remain challenging and uncertain economic conditions, Powertech has delivered pleasing revenue growth and significantly improved profitability, though margins remain below historical levels.”

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Altron sees stronger earnings