Mteto Nyati. Picture: SOWETAN
Mteto Nyati. Picture: SOWETAN

Allied Electronics (Altron) said on Wednesday that it expected headline earnings per share (HEPS) for the six months ended August 31 to be between 16% and 36% higher than in the previous period.

On a normalised basis, both earnings before interest, tax amortisation and depreciation (ebitda), and amortisation in continuing operations, were expected to show growth in excess of 10%, the company said in a trading statement.

Ebitda for continuing operations was expected to be broadly in line with the previous corresponding period despite the strengthening of the rand, which has reduced the contribution from the offshore operations. HEPS had shrunk due to 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 in April 2017, the company said.

The group had said previously it planned to use the R400m investment from its strategic shareholder Value Capital for acquisitions.

Altron is re-positioning itself as an information and communications technology business. Its remaining assets include Bytes group of businesses, which provides software and hardware products and services, and Altech businesses operating in the telecoms space.

The move has also seen the appointment of former MTN CEO Mteto Nyati as CEO. Value Capital CEO is former Brait director Sam Sithole.

In respect of the company’s discontinued operations, HEPS for the period were expected to be a loss of between 5c and 9c, or 61% and 78%, respectively, the company said on Wednesday.

Altron’s interim results are expected on 25 October. At 10.52am, Altron was 2.15% down to R12.26. The company had gained 41.73% so far this year.

With Thabiso Mochiko

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