Altech, Altron caned by East and West Africa

Allied Technologies (Altech) advised on Wednesday (19 September) that its headline earnings and adjusted headline earnings per share for the interim period ended August 2012, are expected to be between 18% and 25% lower than adjusted HEPS of 181 cents in 2011.

The group had reported revenue of R4.8 billion in the corresponding reporting period, along with earnings before interest, taxes, depreciation, and amortization before capital items of R456 million.

“These reductions are primarily due to continued poor results in Altech´s East and West African operations,” Altech said.

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

The ICT group also noted that due to the impairments in respect of Altech´s East and West African operations, basic earnings per share are expected to show a loss of between 303 cents and 310 cents, compared to a profit of 141 cents in the previous comparable financial period.

“Shareholders are advised that the company has entered into negotiations, which if successfully concluded may have a material effect on the price of the company´s securities,” Altech said in a statement.

The group told BusinessTech recently that negotiations relating to the sale of its flagging West Africa operations were still ongoing despite Altech CEO, Craig Venter telling the media on 25 April that the group was six to eight weeks away form a sale.

Altech expects to publish its results on about September 26, 2012.

Parent company, Allied Electronics Corporation (Altron) also announced on Wednesday that it expects headline earnings per share and adjusted diluted headline earnings per share for the half year ended August 2012 to be between 2% higher and 5% lower than  diluted HEPS of 92 cents in 2011.

“Basic earnings per share for the half year ended 31 August 2012 is expected to be between 95% and 105% lower as against the previous corresponding period as a result of significant impairments principally in respect of Altech´s East African operations,” Altron said.

In half year results in 2011, Altron reported revenue of R11.5 billion, while ebitda decreased 6% to R932 million.

Altron expects to publish its results on about October 9, 2012.

Shares in Altron declined 95 cents or 4.14% to R22 on the JSE at close of play, while Altech picked up 20 cents to R40.42.

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Altech, Altron caned by East and West Africa