Altron expects earnings per share to rise by 16%

ALLIED Electronics Corporation (Altron) yesterday said it expected to record headline earnings per share (Heps) of at least 16 percent for the six months to the end August.

The electronic contract manufacturer said Heps would be between 36 cents and 42c a share, reflecting a 16 to 36 percent increase compared with 31c reported in the corresponding period last year.

It said basic earnings per share would show positive growth of 20c during the period – up from 6c last year.

Altron said the results would reflect both continued and discontinued operations.

“In this regard, the entire Powertech group, Altech Autopage and Altech Multimedia continue to be classified as discontinued operations for reporting purposes,” Altron said. “This further disclosure provides shareholders with an insight into the performance of the core and non-core operations in the Altron group.”

The company said on a normalised basis both earnings before interest, tax, depreciation and amortisation (Ebitda) and headline earnings in the continuing operations were expected to show growth of over 10 percent.

“The normalisation relates to significant once-off restructuring costs in the current period, which will reduce overheads going forward and the results of businesses closed in the prior corresponding period,” the group said.

The restructuring saw Mteto Nyati taking over as chief executive of the group in March and it reduced its executive committee.

Altron said Heps for the company’s continuing operations for the six months to the end of August would ease between 45c and 47c, a decrease of between 13 percent and 17 percent compared to 54c in the prior corresponding period.

The company said Ebitda for continuing operations was expected to be in line with the previous corresponding period despite the strengthening of the rand, which cut contributions from the offshore operations.

It said Heps had reduced because of non-trading items as well as the increased number of shares in issue following the removal of the control structure and the issue of shares to Value Capital Partners for R400 million in April.

Basic earnings per share would be between 41c to 45c or between 16 and 24 percent lower that the 54c a year ago.

The company said it would release its interim results next month.

Altron shares dropped 3.03 percent on the JSE yesterday to close at R12.15.