Technology group Altron expects to report a 90c/share headline loss for the year ended 29 February 2016, a deterioration from the loss of 3c/share reported a year ago, it warned shareholders after markets closed in Johannesburg on Monday.
This compares to a headline loss per share in the interim period, ended 31 August 2015, of 64c, showing that losses in the second half of the 2016 financial year were reduced compared to the first half.
It said its full-year basic loss per share would be more than R1,70 on “a total earnings basis, although various impairment reviews will only be concluded during the year-end process”. The basic loss per share during the first half of the year came in at R1,51.
Despite the anticipated full-year losses, Altron said it “continues to make pleasing progress regarding the implementation of its new strategic direction”.
“This has included, among others, transitioning from a family-managed business to an independent management structure and identifying noncore assets for disposal,” it said.
Altron holds a range of assets, including technology services business Bytes Technology Group and vehicle tracking business Altech Netstar.
It said that since the publication of its 2016 interim results on 7 October 2015, its core technology businesses have continued to perform well despite the difficult macroeconomic environment. They are expected to post results that are “ahead of expectations”, Altron said.
However, its noncore businesses, which operate predominantly in the manufacturing sector, have continued to experience the same difficult trading conditions as in the first half, it added.
Reducing debt
“The recently worsened situation in the South African economy further compounds the challenges these businesses are facing.”
Altron said additional information regarding its operational performance, differentiating between continuing and discontinued operations, will be provided in a further trading statement.
The group has, meanwhile, concluded the sale of the subscribers belonging to subsidiary Altech Autopage, it said. It is also expected to announce details of the sale of subsidiary Aberdare Cables soon.
“Various other initiatives to further reduce the Altron group’s exposure to the manufacturing sector as well as the current debt levels are being pursued and announcements in this regard will be made in due course,” it said.
Altron’s annual financial results are expected to be published on 18 May.
Altron — share code AEL — closed on Monday at R4,65/share, up 0,4% on the session. In the past 12 months, the counter has shed 72% of its value. — © 2016 NewsCentral Media