AEL: ALLIED ELECTRONICS CORPORATION LIMITED - Altron Business Update, Trading Statement
Altron Business Update, Trading Statement
Allied Electronics Corporation Limited
(Registration number 1947/024583/06)
(Incorporated in the Republic of South Africa)
Share Code: AEL ISIN: ZAE000191342
Share Code: AEN ISIN: ZAE000191359
("Altron" or "the company")
Altron Business Update, Trading Statement, Refinancing of Term Debt and Notice to
Shareholders in accordance with Section 45(5) of the Companies Act, 71 of 2008
Further to the various announcements made by Altron since the release of its 2016 interim results,
shareholders are advised that the company continues to make progress in repositioning itself as a
focused ICT business. In particular:-
- The information technology businesses have performed well and slightly ahead of
expectations, although these results are likely to be marginally below those reported on at
the end of the 2016 financial year, due to the non-renewal of certain contracts as previously
communicated and the adverse effect of a stronger Rand on the translation of the UK
- The telecommunications and multimedia businesses have performed in line with
expectations and are likely to record growth on the previous year; and
- The discontinued operations are likely to record improved results for the financial year ended
28 February 2017, although still reflecting losses, primarily arising from the Powertech
Transformers and Powertech System Integrators businesses. Altron continues to make
progress on the disposal of the discontinued operations and have recently concluded a
number of the smaller transactions forming part of this process.
Shareholders are advised that a reasonable degree of certainty exists that the company´s basic
earnings per share for the financial year ended 28 February 2017 are expected to be a loss of no
more than 60 cents per share as against the previous financial year´s loss of 259 cents on a total
earnings basis (at least 77% better than the prior year), though this is based on a preliminary
assessment of various impairment reviews which will only be finalised during the year-end process.
Headline earnings per share for the financial year ended 28 February 2017 are expected to be a
profit of no less than 50 cents per share on a total operations basis as against the previous
financial year´s loss of 145 cents.
A further trading statement will be released in due course to, among others, provide
shareholders with earnings forecast ranges for basic earnings per share and headline earnings per
share, as required by the JSE Listings Requirements. This guidance will also provide shareholders
with details on the split between the continuing and discontinued operations within Altron.
Altron´s annual financial results for the financial year ended 28 February 2017 are expected to be
announced on or about 11 May 2017.
This trading statement has not been reviewed or reported on by Altron´s external auditor.
Refinancing of the Altron Group´s Term Debt and Notice to Shareholders In Accordance
with Section 45(5) of the Companies Act, 71 Of 2008
On 24 February 2017, Altron Finance Proprietary Limited (Alfin), a wholly owned subsidiary of
Altron, successfully concluded the refinancing of all of the Altron group´s term debt.
As part of the refinancing of the facilities, the company will continue to subordinate, in favour of the
lenders, certain of its claims against Alfin in accordance with a subordination agreement entered
into between, among others, Altron, Alfin and the lenders (the financial assistance).
Shareholders are hereby notified that in accordance with section 45(5) of the Companies Act, a
resolution of the board of directors of the company, contemplated by sections 45(2) and 45(3) of
the Companies Act was adopted on 22 February 2017, in terms of which the company is
authorised to provide the financial assistance contemplated above.
By order of the board.
7 March 2017
Investec Bank Limited
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