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Notes                 R millions  
                     
          Six months   Six months   Year  
          ended   ended   ended  
          31.08.08   31.08.07   29.02.08  
          (Unaudited)   (Unaudited)   (Audited)  
                     
                     
Headline earnings per share (cents)   12% 192   171   375  
Adjusted headline earnings per share (cents)   15% 200   173   387  
Diluted headline earnings per share (cents)   12% 171   152   327  
Adjusted diluted headline earnings per share (cents) 16% 179   154   339  
                     
Basis of preparation                    
The unaudited interim financial results have been prepared in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS) and its interpretations adopted by the International Accounting Standards Board (IASB) in issue and effective at 31 August 2008, the disclosure requirements of IAS34, Interim Financial Reporting and in compliance with the Listings Requirements of the JSE Limited.  The accounting policies used in the preparation of these interim results are consistent with those used in the annual financial statements for the year ended 29 February 2008.
                     
1.  Capital items                      
Net (loss) / gain on disposal of property, plant and equipment                (1)                   1                  2  
Impairment charges                         -                 (47)               (86)  
Goodwill adjustment on reversal of at acquisition tax losses                 -                    -                  2  
Net gain / (loss) on disposal of businesses and investments               58                   1                 (1)  
Foreign currency translation reserve released on disposal                   -                  (6)                 (7)  
                        57                 (51)               (90)  
                        
2.     Reconciliation between attributable earnings and                
headline earnings                     
Attributable to Altron equity holders                 654                450            1,019  
Capital items   -  gross                    (57)                  51                90  
Tax effect of capital items                       2                    -                   -  
Deferred tax assets reversed on at acquisition tax losses                 -                    -                  2  
Minority interest in capital items                       1                 (23)               (39)  
Headline earnings                     600                478            1,072  
                     
3.     Reconciliation between attributable earnings and                
diluted earnings                     
Attributable to Altron equity holders                 654                450            1,019  
Additional earnings attributable to BBBEE minorities in subsidiaries              (56)                 (44)              (118)  
Minority interest in adjustments                       1                   6                  7  
Additional earnings attributable to dilutive options at subsidiary level                (5)                  (5)               (14)  
Diluted earnings                     594                407               894  
                     
4.     Reconciliation between headline earnings and                
diluted headline earnings                   
Headline earnings                     600                478            1,072  
Additional earnings attributable to BBBEE minorities in subsidiaries              (56)                 (44)              (118)  
Minority interest in adjustments                       1                   6                  8  
Additional earnings attributable to dilutive options at subsidiary level                (5)                  (6)               (17)  
Diluted headline earnings                     540                434               945  
                     
5.   Reconciliation between headline earnings and                  
adjusted headline earnings                   
Adjusted headline earnings have been presented to demonstrate the impact of some once off events and accounting charges on the headline earnings of the group. Headline earnings are reconciled to adjusted headline earnings as follows:            
           
           
           
                     
Headline earnings                     600                478            1,072  
Amortisation of intangibles                     42                  13                40  
IFRS 2 charge on BBBEE transactions                     -                    -                  3  
Costs associated with proposed purchase of minorities in subsidiaries                 -                    -                13  
Tax effect of adjustments                    (13)                  (4)               (14)  
Minority interest in adjustments                      (3)                  (2)                 (8)  
Adjusted headline earnings                     626                485            1,106  
                     
6.   Reconciliation between diluted headline earnings and              
adjusted diluted headline earnings                 
                     
Diluted headline earnings                   540                434               945  
Amortisation of intangibles                     42                  13                40  
IFRS 2 charge on BBBEE transactions                     -                    -                  3  
Costs associated with proposed purchase of minorities in subsidiaries                 -                    -                13  
Tax effect of adjustments                    (13)                  (4)               (14)  
Minority interest in adjustments                      (3)                  (2)                 (8)  
Adjusted diluted headline earnings                   566                441               979  
                     
Fully diluted earnings, diluted headline earnings and adjusted 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) Ltd adjusted for the dilutive effect of the option price at the Bytes Technology Group SA level for the four months prior to the exercise of the said option effective 1 July 2008.  
 
 
 - The recognition of the deferred sale of a 30% interest to the Izingwe Consortium in Aberdare Cables based on the assumption that the outstanding purchase price will be settled in cash for R103 million (comprising the empowerment funding obligation net of excess cash deposits of R12 million), adjusted for the dilutive effect of the option price at the Aberdare level and after taking into account the 10% investment in the Izingwe Consortium by Power Technologies (Pty) Ltd.
 - The earnings effect of dilutive options at Allied Technologies Limited level.          
                     
7.    Acquisitions                    
Bytes group                    
During the period the Bytes group acquired a number of operations, namely Planflow, Intelleca and Nor Papers for an aggregate consideration of R298 million, of which R45 million is deferred. 
In the six months to 31 August 2008 these acquisitions contributed R95 million to revenue and R4 million to the consolidated profit after tax.		  
 
 
 
          Recognised   Fair value   Carrying  
          values   adjustments   amount  
Non-current assets                       14                  90               104  
Current assets                     151                    -               151  
Non-current liabilities                        (1)                 (25)               (26)  
Current liabilities                      (60)                    -               (60)  
Net identifiable assets and liabilities                 104                  65               169  
Goodwill arising on acquisition                           129  
Total consideration                             298  
less deferred purchase consideration                           (45)  
Consideration paid in cash                           253  
                     
Powertech group                    
During the period the Powertech group acquired the remaining 50% of ABB Powertech Transformers (Pty) Ltd that it had not previously owned for a consideration of R320 million. 
In the six months to 31 August 2008 this acquisition contributed R363 million to revenue and R26 million to the consolidated profit after tax.		  
 
 
 
The purchase price allocation is in the process of being finalised. Recognised   Fair value   Carrying  
          values   adjustments   amount  
Non-current assets                     110                127               237  
Current assets                     892                  15               907  
Non-current liabilities                        (2)                 (40)               (42)  
Current liabilities                    (562)                    -              (562)  
Net identifiable assets and liabilities                 438                102               540  
Attributable to minorities                      (42)                 (21)               (63)  
Net attributable assets and liabilities                 396                  81               477  
Goodwill arising on acquisition                            82  
                              559  
Fair value of existing joint venture interest applied to business combination                  (239)  
Consideration paid in cash                           320  
                     
Altech group                    
On 1 March 2008, the Altech group acquired from Sameer ICT Limited (Sameer) 51% of the issued share capital  of Kenya Data Networks Limited (KDN), Swift Global(Kenya) Limited (Swift) and Infocom Limited (Infocom).The purchase price of US$75 million was allocated as follows:
 - US$68 million for the shares in KDN.                  
 - US$5 million for the shares in Swift.                  
 - US$2 million for the shares in Infocom.                
Of the total purchase price of US$75 million referred to above, an amount of US$10 million will be held in escrow, to be released to the vendors of the shares concerned, against the achievement of an aggregated combined profit after taxation of at least US$11.7 million for the 12 months ending 28 February 2009. The escrow amount and interest thereon will be reduced proportionately to any shortfall on the warranted profit after taxation stated above.
                     
In addition the Altech group and Sameer injected new capital of US$20 million into the three companies acquired, of which 51% was provided by the Altech group and the remaining 49% was provided by Sameer.Therefore, the Altech Group's maximum total investment was US$85.2 million, comprising the purchase price of US$75 million and the cash injection of US$10.2 million. The purchase price allocation is in the process of being compiled.
                     
During the period under review the Altech group also acquired 100% of the Altech Netstar franchisees in Witbank and Bloemfontein.
                     
                  Carrying  
                  amount  
Non-current assets                             323  
Current assets                             111  
Non-current liabilities                            (139)  
Current liabilities                            (173)  
Net identifiable assets and liabilities (before capital injection)                     122  
Attributable to minorities                             (51)  
Net attributable assets and liabilities                          71  
Allocated to Intangibles and goodwill                           544  
Total consideration                             615  
                     
In the six months to 31 August 2008 these acquisitions contributed R173 million to revenue and R22 million to the   
consolidated profit after tax.                    
                     
                     
9.    Dividends                    
        It is group policy for dividends to be declared after the end of the financial year.          

 

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