Altron Limited has issued a revised trading statement for the financial year ending 29 February 2024. This revised statement provides updated financial guidance ahead of the official results announcement. The revisions highlight significant changes in the company’s earnings metrics, reflecting both operational improvements and specific non-cash adjustments. This article delves into the details of the revised statement, offering insights into Altron’s financial performance and its implications for investors.
Revised Financial Metrics
Headline Earnings Per Share (HEPS)
Altron’s revised trading statement indicates a substantial improvement in headline earnings per share (HEPS) from continuing operations. HEPS is projected to be between 115 cents and 117 cents. This represents an increase of 35% to 38% compared to 85 cents reported for the year ended 28 February 2023. This significant growth underscores the company’s effective management and operational efficiency.
| Metric | Revised 2024 Estimate | Previous 2023 Report | Percentage Change |
|---|---|---|---|
| HEPS from Continuing Operations | 115 – 117 cents | 85 cents | 35% – 38% increase |
| Group HEPS | (24) – (26) cents | 29 cents | N/A (Decline) |
Group HEPS
Despite the positive outlook for HEPS from continuing operations, the group HEPS paints a different picture. Group HEPS is estimated to be between (24) cents and (26) cents, compared to 29 cents for the previous year. This decline is primarily due to non-cash adjustments made in the interim results for the six months ended 31 August 2023. These adjustments have significantly impacted the overall group performance.
Earnings Per Share (EPS)
EPS from Continuing Operations
The revised EPS from continuing operations also shows a robust increase. EPS is estimated to be between 107 cents and 109 cents. This is a rise of 45% to 47% compared to the 74 cents reported for the previous year. The strong EPS growth from continuing operations highlights Altron’s successful strategic initiatives and cost management efforts.
Group EPS
Contrary to the positive EPS from continuing operations, the group EPS is forecasted to be (43) cents, compared to (1) cent reported for the previous year. Similar to group HEPS, this decline is attributed to the non-cash adjustments made during the interim results period.
Impact of Non-Cash Adjustments
The non-cash adjustments referenced in the trading statement have had a considerable impact on Altron’s financial metrics. These adjustments were primarily made in the interim results for H1 FY24 and have affected both HEPS and EPS at the group level. It’s important to note that while these adjustments have negatively impacted the group figures, the continuing operations remain strong and show significant improvement.
Table: Summary of Key Financial Metrics
| Financial Metric | Revised Estimate | Previous Year | Change |
|---|---|---|---|
| HEPS from Continuing Operations | 115 – 117 cents | 85 cents | 35% – 38% increase |
| Group HEPS | (24) – (26) cents | 29 cents | N/A (Decline) |
| EPS from Continuing Operations | 107 – 109 cents | 74 cents | 45% – 47% increase |
| Group EPS | (43) cents | (1) cent | N/A (Decline) |
Restatements and Classification Changes
The comparative information has been restated to reflect certain classification changes. These changes include the classification of Altron Nexus as a discontinued operation. Additionally, the net profit or loss arising from foreign exchange exposures related to cash and cash equivalents has been reclassified. Previously disclosed within operating profit and EBITDA, these exposures are now presented as a separate line item on the statement of comprehensive income.
Annual Results Presentation
Altron Group CEO, Werner Kapp, will present the company’s 2024 annual results on 20 May 2024. The presentation will be webcast at 09:30 am (CAT). Interested parties can register for the event through the provided link.
Conclusion
Altron Limited’s revised trading statement for the year ended 29 February 2024 reveals a mixed financial outlook. While there is significant growth in HEPS and EPS from continuing operations, the group figures are impacted by non-cash adjustments. Investors should consider both the positive operational performance and the one-time adjustments when evaluating the company’s financial health. The upcoming annual results presentation will provide further clarity and insights into Altron’s strategic direction and financial performance.