Altech expects to extend its losses

·12 Apr 2013

JSE-listed Allied Technologies Limited (Altech) has advised that its headline earnings and adjusted headline earnings per share for the year ended February 2013, are expected to be between 20% and 27% lower than previously.

The group said its basic earnings per share are expected to reflect a loss of between 950 cents and 970 cents, compared to a loss of 283 cents in 2012.

“These reductions are primarily due to poor results in Altech´s East and West African operations, both of which have been disposed of with effect from 28 February 2013.

“The remaining operations within Altech are performing satisfactorily,” Altech said.

Altron

Parent company Allied Electronics (Altron), meanwhile also advised on Friday (12 April) that its headline earnings per share for the financial year ended February 2013 is expected to be lower by between 27% and 32%.

“Headline earnings per share has been affected by a very challenging second half for the Powertech operations, particularly in the Cables business, as well as the trading losses incurred by Altech´s East and West African operations prior to their disposal,” the group said.

“Bytes has performed in line with expectations,” it added.

Altron said it expects a basic loss per share of between 91 cents and 99 cents, against a profit of 55 cents in the previous corresponding period.

“Basic earnings per share has been affected by a combination of the loss on disposal of Altech´s East and West African operations, as well as the impairments taken at the half year with respect to these same operations,” the group said.

In March, both Altron and Altech indicated that they had both entered into negotiations, in separate announcements on SENS, which fuelled market speculation that Altron was set to buy up the shares of Altech and delist the company.