About
This Report

This integrated annual report (IAR) is the eighth published by Allied Electronics Corporation Limited (Altron). The report provides a holistic view of the group’s strategy, performance and prospects, and outlines how we have created value for all of our stakeholders during the year in review. It also sets out the group’s ambitions and objectives for the 2018 financial year and beyond.

As always, our intention is to represent both financial and important non-financial aspects of performance in a balanced way, which we do through the framework of our four strategic value drivers: financial sustainability, human capital, products and services, and external relationships.

In reporting in this integrated manner we hope to provide our stakeholders with all the information they require to make decisions regarding their continued interaction with our business. This year, to improve the fluidity of our reporting, we have included information regarding our relationships with our key stakeholder groups, how we engage with each of them, and how we respond to their interests and concerns within each section of “Our Performance”, rather than in a separate section.

REPORTING FRAMEWORKS

Altron takes guidance on its operations and reporting from the King Report on Governance for South Africa 2016 (King III) and aligns its reporting with the Integrated Reporting Council’s Integrated Reporting (‹IR›) Framework and the core level of the Global Reporting Initiative’s (GRI) G4 sustainability reporting guidelines.

Our financial statements are produced in accordance with the International Financial Reporting Standards (IFRS) and comply with the JSE Listings Requirements as well as the requirements of the Companies Act of South Africa 2008.

ASSURANCE

Our annual financial statements are audited by KPMG who expressed an unmodified opinion thereon. Our B-BBEE rating was independently verified in June 2016 by Empowerdex, a SANAS-accredited service provider.

As in 2016, the group has decided this year not to assure its environmental footprint and health and safety disclosures by a third party. We rely on our internal audit department to provide independent oversight over controls and data integrity as part of the normal health and safety audit process.

SCOPE AND PARAMETERS

This report covers the performance of the group during the financial year spanning 1 March 2016 to 28 February 2017 (hereafter referred to as “2017”).

This report contains only the content deemed most critical to driving value creation for the group and its stakeholders going forward. Therefore, the contents of this report relate primarily to the activities and performance of our continuing core operations. In 2017 this represented a total of 66 facilities.

Details of consolidations, closures and disposals during the year, as well as changes in the structure and/or ownership of our operations, can be found in the company structure section here. A diagrammatic representation of the group’s structure, including both core and non-core operations can be found here.

With respect to comparability, all significant items are reported on a like-for-like basis with no major restatements. In order to ensure comparability, information related to the core operations has been separated from that relating to non-core operations where relevant. Significant decreases in numbers, where these are noted, are primarily due to the exclusion of Aberdare Cables from the group’s financial statements after June 2016, when that company exited the group.

Please see our public website (www.altron.com) for full and abridged financial statements and other additional disclosures.

FORWARD-LOOKING STATEMENTS

Certain statements in this report constitute forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, objectives or achievements of the Altron group and its business divisions, joint ventures, associates and foreign operations, as well as the industry in which it operates, to be materially different from future results, performance, objectives or achievements expressed or implied by these forward-looking statements. No assurance can be given that forward-looking statements will prove to be correct and undue reliance should not be placed on such statements.

The performance of the Altron group is subject to the effect of changes in commodity prices, currency fluctuations and the risks involved in the particular industries in which we operate. The Altron group undertakes no obligation to update publicly or to release any revisions to these forward-looking statements to reflect events or circumstances after the date of publication of this report or to reflect the occurrence of unanticipated events.

BOARD APPROVAL

The Altron board acknowledges its responsibility for ensuring the integrity, objectivity, reliability and transparency of the 2017 IAR. The board confirms that it has collectively reviewed the report’s contents and to the best of its knowledge and belief it addresses the Altron group’s material issues and fairly presents the integrated performance of the organisation and its impact on the environment and stakeholders. Refer to the board statement for the full statement and approval of the Altron board.

FEEDBACK

This report represents our continued efforts to improve the quality and accessibility of our disclosure to all of our stakeholders, and their feedback is important in helping us to improve the way we report and communicate. We welcome all feedback – on this report and otherwise – via e-mail to info@altron.com.