Altron is expecting improved results for the year ended 28 February, with headline earnings per share (HEPS) expected to rise by between 57% and 77%.
This is according to a trading statement from the group, which shows overall HEPS will be in a range of between 111cps and 125cps for the year, compared to 70.9cps a year ago.
Earnings per share (EPS) are also expected to swing to a profit of between 43c and 53c after a loss per share of 54.6c a year ago.
"During the financial year, the Altron group restructured a number of its core operations to position itself for growth in the ICT sector," the group says.
As a result, the group's core operations "have had a satisfactory performance". Continuing operations are expected to see a HEPS increase of between 1% and 7%, to between 115cps and 122cps, compared to 114.3cps last year. EPS are expected to be down by between 4% and 9%, to a range of 106cps to 111cps, compared to 116.6cps at the end of February 2017.
When looking at continuing operations on a normalised basis, revenue is expected to increase by between 10% and 12%, while earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to increase by between 14% and 18%.
The primary difference between continuing operations and the normalised continuing operations' results relates to approximately R60 million (after tax) of non-recurring costs relating to restructuring.
Normalised continuing operations HEPS will likely be 14% to 19% higher at between 132cps and 137cps.
"It is also important to note the issue of additional shares in March 2017 to the group's strategic shareholder, Value Capital Partners, has diluted certain performance metrics by approximately 10%, while the reduction in core debt will not be fully captured in those metrics," it says.
Altron announced on 29 September 2017 the acquisition of Phoenix Software in the UK, which it says has positively contributed to revenue and EBITDA since the conclusion of this transaction.
At year end, the Powertech group, Altech Multimedia and Altech Autopage are classified as discontinued operations. Altron says the last of the conditions precedent with regards to the disposal of Powertech Transformers is expected to be fulfilled by 31 May 2018.
Altron expects to complete the disposal of the remaining discontinued operations, CBI Telecom Cables and Altech Multimedia, in the current financial year.
"A combination of the disposal of loss-making operations and improved performance out of the remaining discontinued businesses has resulted in the material improvement in both earnings per share and headline earnings per share when compared to the prior year," it says.
The group's full year results ending 28 February are expected to be released on SENS on 10 May.
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