Allied Electronics Corporation Limited

Unaudited consolidated interim financial results for the six months ended 31 August 2007

Notes				Figures in R millions

		Six months	Six months		Year
		ended	ended		ended
		31.08.07	31.08.06		28.02.07
		(Unaudited)	(Unaudited)		(Audited)


Headline earnings per share (cents)	38%	171	124		283	*
Diluted headline earnings per share (cents)	39%	152	110	#	247	*
* Restated in accordance with Circular 08/2007 - Headline Earnings (refer note 2)
# Restated to reflect consistency in basis of calculation used in the current period

Basis of preparation
The unaudited consolidated interim financial results have been prepared in accordance the measurement criteria of International
Financial Reporting Standards (IFRS) and the presentation as well as the disclosure requirements of IAS 34 - Interim
Financial Reporting in compliance with the Listings Requirements of the JSE Limited.
The accounting policies followed are consistent with those used in the annual financial statements for the year ended
28 February 2007.

1. Capital items
Net gain on disposal of property, plant and equipment		1	2		33
Net gain on disposal of businesses and investments		1	4		9
Foreign currency translation reserve realised on disposal		(6)	-		-
Impairment charges		(47)	-		(61)
Goodwill adjustment on utilisation of at acquisition tax losses		-	-		(19)
		(51)	6		(38)

2. Reconciliation between attributable earnings and
headline earnings
Attributable to Altron equity holders		450	353		805
Capital items - gross		51	(6)		38
Deferred tax assets raised on at acquisition tax losses		-	-		(16)
Tax effect of above adjustments		-	1		(5)
Minority interest in adjustments		(23)	1		(29)
Headline earnings		478	349		793

The determination of headline earnings for the year ended 28 February 2007 has been restated following the issue of
Circular 08/2007 on Headline Earnings. The income statement impact of the deferred taxation asset subsequently raised
on tax losses not previously recognised in business combinations has now been excluded from headline earnings in
accordance with the new circular.

3. Reconciliation between attributable earnings and
diluted earnings
Attributable to Altron equity holders		450	353		805
Additional earnings attributable to BEE minorities in subsidiaries		(44)	(40)		(87)
Minority interest in adjustments		6	6		11
Dilution in earnings of subsidiary dilutive options		(5)	(4)		(12)
Diluted earnings		407	315		717

4. Reconciliation between headline earnings and
diluted headline earnings
Headline earnings		478	349		793
Additional earnings attributable to BEE minorities in subsidiaries		(44)	(40)		(82)
Minority interest in adjustments		6	6		13
Dilution in earnings of subsidiary dilutive options		(6)	(4)		(15)
Diluted headline earnings		434	311		709

Fully diluted earnings and diluted headline earnings have been calculated in accordance with IAS 33 - Earnings per share on the basis that:

- Kagiso Strategic Investments (Pty) Ltd exercised its full option on 22% of the shares in Bytes Technology Group South Africa (Pty) Limited, adjusted for the dilutive effect of the option price at the Bytes SA level.

- The recognition of the deferred sale of the 30% interest of the Izingwe Consortium in Aberdare Cables based
on the assumption that a portion of the purchase price will be settled in cash of R152 million,
adjusted for the dilutive effect of the option price at the Aberdare level and taking into account the 10%
investment in the Izingwe Consortium by Power Technologies (Pty) Ltd.
- The earnings effect of dilutive options at BTG Limited and Allied Technologies Limited subsidiary level.
The basis of calculation for the comparative period has been restated to be consistent with the basis used in the
current period.

5. Acquisitions
During the period the group acquired a 50% interest in the East Rand Document Solutions operations for R6 million effective
1 March 2007, 100% of the Mailing Facilities operation for R8 million effective 1 June 2007, 100% of Mastermed for
R8 million effective 1 March 2007 and 100% of Swanib Cables for R25 million with effect from 1 March 2007.
In the six months to 31 August 2007 these acquisitions contributed R93 million to revenue and R9 million to the
consolidated profit before tax.
		Recognised	Fair value		Carrying
		values	adjustments		amount
Non-current assets		2	9		11
Current assets		44	-		44
Cash and cash equivalents		8	-		8
Current liabilities		(51)	-		(51)
Net identifiable assets and liabilities		3	9		12
Goodwill on acquisition					40
Total consideration					52
less deferred purchase consideration					(5)
Consideration paid in cash					47

6. Dividends
It is group policy for dividends to be declared after the end of the financial year.

Back to top