East, West Africa again hit Altech
The technology group's share price has fallen by a third in the past 12 months. By Duncan McLeod.
JSE-listed technology group Altech has again been hit by poor performance at its East and West Africa operations, and has warned that as a result of impairments in these businesses it expects headline and adjusted headline earnings per share for the six months ended 31 August 2012 to be between 18% and 25% lower than a year ago.
“The reductions are primarily due to the continued poor results in Altech’s East and West African operations,” Altech says in a statement to shareholders. “The remaining operations within Altech are performing satisfactorily.”
The group says that due to impairments in respect of the East and West Africa businesses, basic earnings per share are expected to show a low of between 303c and 310c, compared to a profit of 141c in the year-ago six-month period. It expects to publish its interim results on 26 September.
The group’s parent, Altron, which is also listed on the JSE, has warned that as a result of the problems at Altech the impairments will contribute to a reduction in basic earnings per share of between 95% and 105%. Altron will report its results on 9 October.
At the same time, Altech has said it is in “negotiations” that could affect its share price. It says if the talks are concluded successfully, it could have a material effect on its share price.
Altech’s share price has lost 33% of its value in the past 12 months; Altron is down by 12% over the same period. — (c) 2012 NewsCentral Media