As restructuring under new chief executive Mteto Nyati gets underway, Altron has warned that discontinued operations will reflect a loss in earnings.
In a trading statement, the group states that, following the appointment of Nyati, it will streamline and simplify corporate and executive structures. This will be followed by a full review of its various non-core operations.
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.
Financial results for the year ended 28 February 2017 have been split between continuing and discontinued operations in accordance with IFRS criteria.
The entire Powertech group, Altech Autopage, Altech Multimedia and Altech Node are classified as discontinued operations for reporting purposes.
Shareholders are advised that, in respect of the company’s continuing operations, the headline earnings per share for the financial year ended 28 February 2017 are expected to be between 110 cents and 120 cents (between 5% and 13% lower than the previous corresponding period). Basic earnings per share is expected to be between 112 cents and 122 cents (between 7% and 16% higher than the previous corresponding period).
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 and 50 cents (between 81% and 85% better than the previous corresponding period). Basic earnings per share is expected to be a loss of between 162 cents and 172 cents (between 52% and 55% better than the previous corresponding period).
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 and 80 cents (between 141% and 155% better than the previous corresponding period). Basic earnings per share is expected to be a loss of between 40 cents and 60 cents (between 77% and 85% better than the previous corresponding period).
