Altron rallies on profit forecast

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Altron rallies on profit forecast

Published Date: 2019-04-12 | Source: Stephen Gunnion | Author: Stephen Gunnion | Comments

Altron rallies on profit forecast

More dividends lie ahead after the IT and electronics group said it expected a strong rise in full-year earnings.

Altron's shares rallied yesterday after it alerted the market to a strong rise in full-year earnings due to good performances from the majority of its operations.

In a trading statement, the IT and electronics group said earnings per share (EPS) from total operations would be 264% to 280% higher, while headline EPS would rise by between 49% and 62%. From continuing operations, EPS are expected to rise by as much as 65% and headline EPS by up to 56%.

At the end of the first half of its financial year, the group paid its first dividend in two years after it sold non-core assets and cut its debt following a restructuring of its operations.

Last July, the group sold its Powertech Transformers business and has since concluded the sale of Altech UEC, its last non-core subsidiary. It said the ongoing improvement in the performance of the discontinued businesses against the prior year has contributed to the improvement in both earnings and headline earnings per share for total operations.

Altron's shares rose 4.2% to R20.69 yesterday, taking gains this year to 15%. They've risen 360% from their November 2015 low of R4.50.





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