| Fri 13 Apr 2012, 15:31 | | ALT - Allied Technologies Limited - Press Release - East and West African |
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ALT - Allied Technologies Limited - Press Release - East and West African
Operations Affect Altech Performance
Allied Technologies Limited
Member of the Altron Group
Incorporated in the Republic of South Africa
(Registration number 1946/020415/06)
Share Code : ALT
ISIN Number : ZAE000015251
("Altech" or "the company")
Date: 13 April 2012
EAST AND WEST AFRICAN OPERATIONS AFFECT ALTECH PERFORMANCE
JSE listed Allied Technologies Limited (Altech) today issued a Trading Statement
to advise its shareholders that the company`s headline earnings and adjusted
headline earnings per share for the financial year ended 29 February 2012 are
expected to be between 24% and 30% lower than the equivalent figures for the
financial year ended 28 February 2011 ("the previous financial year").
These reductions are primarily due to continued poor results in Altech`s East
and West African operations. Altech Management is investigating remedial
measures.
Certain of the operations in East Africa experienced a tough trading period with
financial performance below expectations with a number of challenges, including
currency fluctuations, high inflation rates and interest costs, sharp drops in
broadband pricing, network instability due to fibre breaks and undersea cable
breaks. Exposure to currency fluctuations has been reduced and steps are being
taken to address certain underperformance issues. New management is focused on
resolving operational and financial challenges and strengthening the positioning
of the businesses in the region.
A green-field start-up operation by Altech in Nigeria, Altech West Africa was a
strong profit performer for five years. Its recent trading performance on paper
recharge vouchers was affected by mobile operators` ability to offer cheaper
alternatives. In addition, its five year "pioneer " tax status in Nigeria
recently ended and the Nigerian Government has lifted the prohibition on imports
of recharge vouchers, leading to increased competition.
Altech has decided to impair fully the goodwill in respect of the West African
operations and to impair the carrying value of the investment in the East
African operations. These impairments will result in a loss in basic earnings
per share, which is expected to be between 281 cents and 302 cents compared to a
profit of 216 cents the previous financial year.
The other operations within Altech performed to expectations for the financial
year ended 29 February 2012. Altech Multimedia returned to profit after several
years of losses. Six out of the seven acquisitions made and joint ventures
initiated during the past three years have shown satisfactory profit
performances and the remaining one has now been successfully integrated into
Altech Autopage Cellular. In addition, the three significant empowerment
transactions implemented over the past 18 months, in Altech Multimedia, Altech
Radio Holdings and Altech Netstar, have assisted the Altech Group in achieving
Level 3 empowerment status.
The full results for the period ended 29 February 2012 are expected to be
published on SENS on or about 25 April 2012.
ENDS
Notes to Editors:
About Allied Technologies Limited
Allied Technologies Limited (Altech) is listed on the Johannesburg Stock
Exchange (JSE). The company focuses on the Telecommunications, Multi-media and
Information Technology (TMT) industries with a global footprint in 14 countries
and employs more than 4 000 employees.
As a leading South African multi-billion rand group, Altech is involved in the
design, development and convergence of Telecommunications, Multi-media systems
and IT solutions.
For further information please contact:
Shenanda Janse van Rensburg
Group Executive: Marketing, PR & Communications - Altech Head Office
Tel: +27 11 715 9031
Mobile: +27 84 777 1977
Email: sjvrensburg@altech.co.za
www.altech.com
JSE code: ALT
Date: 13/04/2012 15:31:01 Produced by the JSE SENS Department.
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