Altron corporate news
TRADING STATEMENT
Tuesday, February 23, 2010
Shareholders are referred to the company’s outlook statement contained in the 2009 interim results announcement, which contemplated continuing challenging market conditions over the short to medium term and are advised as follows:
· Powertech has continued to experience difficult trading conditions. Volumes have remained depressed and pricing pressures have increased, negatively affecting operating margins. Capital projects continue to be delayed, while the ongoing strength of the Rand has also had a detrimental effect on results;
· Bytes has, following the implementation of various corrective actions, delivered an improved performance during the second half of the financial year, which is broadly in line with our expectations. However, pricing pressures remain in many of its markets;
· Altech continues to deliver a good performance in what has been a tough trading environment, benefiting from, among others, sound strategic decisions and a high proportion of annuity income which has resulted in improved operating margins. Shareholders are referred to Altech’s announcement published on SENS on 23 February 2010.
Accordingly, shareholders are advised that a reasonable degree of certainty exists that the company’s basic earnings per share for the year ending 28 February 2010 are expected to be between 32% to 44% lower as against the previous corresponding period. This range may be subject to further change depending on the final values of the Rand, various commodity prices at the year-end and the outcome of impairment testing to be conducted at certain Altron subsidiaries as part of the year-end process. Headline earnings per share for the year ending 28 February 2010 are expected to be between 25% to 35% lower as against the previous corresponding period. The company expects that its diluted adjusted headline earnings per share for the year ending 28 February 2010 will be between 20% to 30% lower as against the previous corresponding period. This calculation includes an adjustment for the amortisation of intangibles arising from recent acquisitions. Management considers this to be the most meaningful measure of profitability for the company.
Altron’s annual financial results for the financial year ending 28 February 2010 are expected to be announced on or about 3 May 2010.
This trading statement has not been reviewed or reported on by Altron’s external auditors.
By order of the board.
Johannesburg
23 February 2010
Sponsor
Investec Bank Limited
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