Allied Electronics (Altron) expects its earnings for the financial half-year ended 31 August to be significantly lower than for the comparable period last year.
In a statement, Altron details how its sub-holding operations have experienced varying trading conditions.
Bytes has continued to perform well during the last six months, producing results ahead of expectations and achieving good growth in all areas of its business, predominantly as a result of improved corporate IT spend and the award of certain key contracts.
Powertech’s results were adversely affected by its cable businesses, which continued to face difficult times with demand remaining subdued and pricing highly competitive, particularly in the local building and construction sector and at its offshore Iberian operations. Disruptions due to the nationwide strike in July 2011 also negatively impacted the major operations within the Powertech group. However, the remainder of Powertech`s operations exceeded expectations by improving efficiencies and capitalising on those growth opportunities which have presented themselves.
Altech’s performance since the year end has not improved to the extent anticipated, largely as a result of continuing challenges in its East African business. Pleasing growth has however been recorded in several of the remaining businesses of the Altech group. In a separate statement, Altech reports that headline earnings and adjusted headline earnings per share are expected to be between 15% and 25% lower, compared to the previous year, and basic earnings per share are expected to be between 25% to 35% lower. These reduction are primarily due to poor results in Altech’s East and West African operations, as well as operating costs incurred within Altech Technology
Concepts to transform that company into a first tier ISP.
Altron shareholders are advised that a reasonable degree of certainty exists that the company`s headline earnings per share and adjusted diluted headline earnings per share, for the financial half year ended 31 August 2011 are expected to be lower by between 14% and 18% and 11% and 15% respectively, as against the previous corresponding period.
Basic earnings per share for the financial half year ended 31 August 2011 is expected to be between 18% and 24% lower.
Basic earnings per share has been affected by impairments of goodwill, principally in respect of Altech’s East African operations and Bytes’ Nor Paper.