Allied Electronics (Altron) has dipped into the red in the six months ended August 31, as the JSE-listed firm continued to experience “adverse” challenges weighing on its Powertech Transformers, Altech Multimedia, Altech Autopage and Altech Node business units.

The group posted a basic loss a share of 151c for the first half of the financial year – a significant contraction on the basic earnings a share of 58c recorded in the prior corresponding period.

For the six months under review, the group reported a headline loss a share of 64c, plunging from the headline earnings a share of 72c achieved in the six months to August 2014.

Altron posted a total comprehensive loss of R569-million in the six months to August, compared with the prior corresponding period’s R195-million total comprehensive income.

The net loss equated to R618-million, compared with profit of R190-million in the first half of last year.

Altron's revenue for the period decreased 7% to R13.3-billion and earnings before interest, taxes, depreciation and amortisation (Ebitda) by 69% to R241-million.

The significant losses were attributed to discontinued operations, namely Altech Autopage, Altech Node and Powertech Transformers, which posted widened losses of R378-million, compared with a loss of R34-million in the previous corresponding period.

Powertech Transformers saw a decline in orders from State-owned power utility Eskom, while Altech Node experienced operating losses.

Altron would now dispose of Powertech Transformers and close Altech Node.

Altech Autopage continued to operate in a difficult and challenging market while the sale of its GSM subscriber bases to three mobile network operators was being finalised.

Altech Multimedia was negatively affected by the delay in Africa’s digital terrestrial television migration.

On a consolidated total operations level, revenue from the Altron telecommunications, multimedia and information technology business contracted 5% to R9.6-billion, while Ebitda declined 65% from R702-million to R245-million during the half-year under review.

Headline earnings declined to a loss of R68-million for the period under review.

Altron Power's revenue fell from R4.2-billion in the first half of last year to R3.8-billion in the current review period, while Ebitda declined by 85% to R15-million. Headline losses for Altron Power widened from a loss of R16-million in the prior period to a loss of R112-million.