Altron leaps higher on earnings update - TechCentral

Altron leaps higher on earnings update

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Altron’s share price leapt higher on Friday on news that the long-troubled JSE-listed technology and industrial group is set to report a swing to profitability in the six months to end-August 2016.

Headline earnings per share for total operations, included continued and discontinued businesses, will be between 25c and 35c, compared to a headline loss per share a year ago of 64c, a swing to the better of between 139% and 155%, the group said.

Basic earnings per share are expected to be between 3c and 9c, an improvement of between 102% and 106%, from a loss of 151c a year ago, the group said.

The shares were trading 22,6% higher at R7/share shortly after the group published news of the improved earnings picture, although the move higher was on thin volumes. It closed at R6,74/share, up 18%.

Altron has split out reporting for its continued and discontinued operations as it restructures to focus on the technology, telecommunications and media sectors and away from the old industrial businesses that have acted as a significant drag on earnings in recent years.

The entire Powertech group, Altech Autopage, Altech Multimedia and Altech Node have all been classified as discontinued operations. “This disclosure provides shareholders with insight into the performance of the core and non-core operations within the Altron group,” it said.

In continuing operations, Altron expects headline earnings per share for the six months to be between 4% and 14% higher.

The headline loss per share for discontinued operations will be between 18c and 28c, a reduction of between 75% and 84% compared to a year ago, when the loss was R1,13.

Altron said it expects to publish its interim results on Wednesday, 19 October.  — (c) 2016 NewsCentral Media

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