Altron has issued a trading statement for the six months ended 31 August 2023 warning shareholders of substantial changes in its financial results from the previous corresponding period.
Headline earnings per share (HEPS) from continuing operations is estimated to be between 43 cents and 51 cents, representing an increase of between 5% and 24% compared to HEPS from continuing operations of 41 cents reported the year before; while group HEPS is estimated to be between (64) cents and (57) cents, representing a decrease of between 288% and 268% compared to group HEPS of 34 cents reported for the comparative period.
Earnings per share (EPS) from continuing operations is estimated to be between 33 cents and 40 cents, representing a range of an 11% decrease and an 8% increase compared to EPS from continuing operations of 37 cents reported for the comparative period; and group EPS is estimated to be between (86) cents and (81) cents, representing a decrease of between 457% and 437%.
Management is in the process of undertaking a detailed business review of all operations, both continuing and discontinuing.
Results for the Reporting Period will be negatively impacted by provisions raised within two non-core subsidiaries, Altron Nexus of R336-million and Altron Document Solutions of R95-million, together with a provision raised at a group level of R33-million in relation to goodwill held on the group balance sheet for Altron Nexus.
Altron Nexus and Altron Document Solutions will be classified as held-for-sale and will be reported in discontinued operations. These two entities contributed 21% to the group’s revenue at year-end, although both subsidiaries were loss-making and therefore did not contribute to the group’s profit.
Werner Kapp, CEO of Altron, comments: “As communicated at the Group’s results for the year-end 2023, we are actively focused on ensuring once-off adjustments do not recur. Since joining the group, I have worked with the management teams in scrutinising all operations to ensure they are strategically aligned and have performance optimisation plans
in place.
“Unfortunately, this process together with recent market developments, has resulted in further provisions in Altron Nexus and Altron Document Solutions, which are accounted for in discontinuing operations.
“However, I am confident we are now at a point where we have a stable base for the Altron Group to grow from. The group maintains a very healthy balance sheet, remains strongly cash generative and is committed to maintaining its dividend policy.
“Our continuing operations are delivering a strong year-to-date performance and I am looking forward to presenting our delivery against our strategy at the half-year results in October.”