AEN: ALLIED ELECTRONICS CORPORATION LTD - Trading Statement
Allied Electronics Corporation Limited
(Registration number 1947/024583/06)
(Incorporated in the Republic of South Africa)
Share Code : AEL ISIN: ZAE000191342
Share Code : AEN ISIN: ZAE000191359
("Altron" or "the company")
Altron Trading Statement
Shareholders are advised that a reasonable degree of certainty exists that the company´s
basic earnings per share for the financial half-year ending 31 August 2015 are expected to
be more than 160% lower (loss of at least 35 cents) as against the previous corresponding
period (a profit of 58 cents), though various impairment reviews will only be concluded closer
to the end of the half-year period. Headline earnings per share for the financial half-year
ending 31 August 2015 are expected to be more than 150% lower (loss of at least 36 cents)
as against the previous corresponding period (a profit of 72 cents).
As reported in the 2015 financial year-end results announcement, the Altron group´s financial
performance has been negatively impacted by, among others, difficult trading conditions,
reduced demand from certain key customers and negative conditions associated with
manufacturing in South Africa. While the majority of Altron´s operations, and most notably
the IT businesses, remain stable and are delivering broadly in line with expectations, four key
areas of the business have continued to significantly impair the recovery of the group´s
performance. Management is addressing each of these by way of certain remediation
1. Altech Autopage - following on from previous communications, shareholders are
referred to Altron´s renewal of cautionary announcement published on SENS on 24
June 2015, when the company advised that it is still at an advanced stage of
negotiations to dispose of Altech Autopage´s GSM subscriber bases;
2. Altech Node - as a result of the poor uptake of this product to date by retail customers,
Altron TMT has identified a third party, with whom it is at an advanced stage of
negotiations, to acquire this business. It is anticipated that Altech Node will be
disposed of in the short-term;
3. Altech UEC - the Multimedia division has, despite an improved order book, continued
to be significantly impacted by a combination of reduced order intake in its core set top
box business in Africa, as well as on-going delays regarding the implementation and
roll-out of the South Africa digital terrestrial television migration program. Further
rightsizing of the business is taking place both locally and globally; and
4. Powertech Transformers - the transformers division has continued to experience an
extremely challenging year, predominantly as a result of poor productivity levels linked
to Eskom not having resumed its normal purchasing patterns from the division. The
Booysens plant in Johannesburg has been closed and management is considering
various alternatives which could include the introduction of an international equity
In addition, management is undertaking a rationalisation of the various Altron group head
offices to create a leaner corporate structure and significantly reduce corporate overheads.
A further trading statement will be released in due course to, among others, provide
shareholders with further detail regarding the Altron group´s performance, as well as
earnings forecast ranges for basic earnings per share and headline earnings per share, as
required by the JSE Listings Requirements.
Altron´s interim financial results for the half-year ending 31 August 2015 are expected to be
announced on or about 7 October 2015.
This trading statement has not been reviewed or reported on by Altron´s external auditor.
By order of the board.
22 July 2015
Investec Bank Limited
Date: 22/07/2015 05:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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