Allied Electronics Corporation (Altron) expects to report a decline in full-year headline earnings, with a mixed bag of results expected from its subsidiaries.
The group says subsidiary Allied Technologies (Altech) is to report headline earnings per share (HEPS) significantly lower than the adjusted HEPS of 320.6c for the prior year.
In terms of JSE definitions, this refers to a decline of between 0% and 10%.
The group says Altech`s earnings decline is mainly because of the strengthening and volatility of the rand and its impact on trading at UEC, despite the fact that UEC`s year-on-year unit sales volumes have increased and the company remains profitable.
It says also that the Competition Tribunal is to hear closing arguments on the NamITech acquisition on Thursday and a ruling is expected within 10 working days after that.
In contrast, Bytes Technology Group`s (BTG`s) HEPS will be 10% to 30% higher than the previous year`s adjusted HEPS of 53.51c, mainly because of improved local trading and the acquisition of the additional 50% stake in Bytes Document Solutions.
However, the company did experience weaker trading conditions in the UK. Altron also says that talks around the introduction of a significant black economic empowerment partner for BTG are well advanced.
Powertech`s earnings are expected to meet the group`s expectations.
"Earnings generated by the power electronics business have remained satisfactory and are in line with management`s expectations.
"As indicated previously, trading conditions in the telecommunications business continue to be challenging with limited visibility on any potential improvement in this sector." However, the group says the reduction of the cost base over the past two years has minimised the impact on the company.
As a result of the subsidiaries` performance, Altron`s HEPS are expected to decline by between 0% and 10% for the year.
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