JSE-listed technology group Altron anticipates a significant rise in headline earnings, forecasting an increase of up to 40%. The company attributes this growth to its customer-centric approach, disciplined strategy execution, and profit enhancement initiatives.
Altron announced today that it is in the process of finalising its financial results for the year ending 28 February 2025.
The group expects headline earnings per share (HEPS) from continuing operations to be at least 40% (a minimum of 41 cents) higher than the 103 cents reported for the twelve months ending 29 February 2024. HEPS is South Africa’s primary profit indicator.
Altron stated that its continuing operations, adjusted for the sale of the ATM Business, achieved low single-digit revenue growth year-to-date. However, the company recorded strong double-digit increases in both EBITDA and operating profit, reflecting improved efficiency and operational leverage across the business.
Platforms Business
Altron reported that its Platforms segment maintained strong year-to-date performance.
Netstar exceeded 2 million subscribers, driving revenue growth and achieving double-digit increases in both EBITDA and operating profit. However, the business faced challenges in the second half of the year due to weaker market conditions in Australia.
Netstar’s Australian operations are expected to report a loss for the year. Meanwhile, Netstar South Africa sustained a strong trajectory, recording double-digit growth in subscribers, supported by both consumer and enterprise segment expansion.
Altron FinTech delivered a robust year-to-date performance, achieving double-digit growth in revenue, EBITDA, and operating profit. “This positive momentum was primarily driven by an expanding customer base within the small and medium-sized enterprise market, which contributed to growth in annuity revenue,” said Altron.
Altron HealthTech also experienced year-to-date revenue growth, with double-digit increases in EBITDA and operating profit. “This performance was underpinned by growth across the private practice management and corporate segments,” said Altron.
IT Services Business
Altron Digital Business, adjusted for the sale of the ATM Business, maintained flat year-to-date revenue due to the delay of two projects into FY2026. As previously indicated, full-year EBITDA and operating profit are expected to be lower than the previous period. “This is due to reduced spending by two large customers in the first half of the year and non-recurring project expenses relating to historic contracts,” said Altron.
Altron Security continued to benefit from corrective measures implemented in the previous period, achieving modest year-to-date growth in EBITDA and operating profit.
Revenue is expected to be lower than the previous period due to capital expenditure constraints at a major customer in the first half of the year and a shift in the revenue mix between agency and principal revenue.
Additionally, Altron Document Solutions has been successfully reintegrated into continuing operations. “Its profit improvement strategy is delivering positive results, with notable year-to-date growth in both EBITDA and operating profit, alongside stable revenue,” said Altron.
Distribution Business
Altron Arrow aims to sustain its operating profit margin for the reporting period. “However, in line with guidance, revenue is anticipated to be weaker due to the cyclical global slowdown in electrical component distribution,” said Altron.
Discontinued Operations
Altron Nexus has undergone restructuring, including a strengthened management team. A profit improvement strategy is in place to enhance cash flow and restore the business to profitability.
“Although year-to-date performance demonstrates substantial improvement over the Comparative Period, the business has generated a year-to-date loss. This result reflects weaker trading conditions experienced in the second half of the year, compared to the first half. Altron is progressing with the active disposal process of Altron Nexus and is in advanced discussions with a potential purchaser,” said Altron.
The group’s financial results are expected to be released on SENS on or around 26 May 2025.
