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Altron’s shares slide on lower earnings forecast

CEO of Altron Mteto Nyati.

CEO of Altron Mteto Nyati.

Published May 6, 2022

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SHARES in JSE-listed tech group Altron tumbled 4.27 percent in intraday trade to R8.75 after it said yesterday that for the year ended February 2022 it would report lower headline earnings per share (heps).

Altron expected to report heps of between 32-42c, down 77-69 percent compared to the comparative period for the prior year, saying that its decrease in both heps and basic earnings per share was a result of the inclusion of Bytes Technology Group in the prior year’s results, which was a material component of Altron Group before it was disposed on December 17, 2020.

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Basic earnings per share was expected to be a loss between (33) cents and (26) cents, which is a decline of between 101- 100.8 percent.

However, headline earnings per share for continued operations was expected in a range of between 49-55 cents, an increase of a range between 58 -78 percent.

As a result of the Covid-19 pandemic and the hybrid way of working, the right-of-use asset associated with the Altron Campus has been impaired during the financial year, the firm said.

The impairments on certain intangible assets had knocked earnings, and Altron said it would report basic earnings per share for continued operations of between 18- 22c, reflecting a reduction of between 23- 3 percent.

Last month it was reported that Altron had appointed Stewart van Graan as new executive chairman and acting CEO effective July 1, 2022.

In January, Altron announced that its CEO, Mteto Nyati, will step down from his role as of June 30 after a five-year term with the group.

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