As Altron marks its 60th anniversary, the JSE-tech listed group has delivered a stellar financial performance, showcasing 50% growth in operating profit to R972 million and a 27% surge in EBITDA to R1.8 billion for the year ending February 2025.
This strong performance emphasises the company’s resilience amid economic uncertainty and its ability to execute a disciplined growth strategy.
A Year of Strong Financial Performance
Despite flat revenue of R9.6 billion, partly due to the sale of its ATM business, Altron demonstrated underlying growth with a 3% organic revenue increase when excluding this divestment.
More impressively, the company’s headline earnings per share (HEPS) jumped 73% to 178 cents, while earnings per share climbed 64% to 156 cents. HEPS is South Africa’s main profit gauge. This robust profitability enabled Altron to reward shareholders with a 52% higher final dividend of 50 cents per share, bringing the full-year dividend to 90 cents per share, a 55% increase from the prior year.
CEO Werner Kapp emphasized the company’s strategic focus, stating:
“This year’s strong results reflect the disciplined execution of our strategy, despite heightened economic and political uncertainty.
“Our high annuity revenue base provides a solid foundation, with our Platforms segment remaining a key growth driver, delivering double-digit revenue and profit growth.”
Key Business Segments Driving Success
Netstar: Expanding Market Leadership
Netstar, Altron’s vehicle tracking and fleet management division, continued its strong momentum with 17% EBITDA growth to R935 million, fueled by a 16% increase in subscribers to over 2 million.
The company strengthened its position in both consumer and enterprise markets by deepening partnerships with insurers, dealerships, and OEMs.
Additionally, Netstar’s platform processed a staggering 226 billion data points, while its global fleet bureau now manages over 33,000 assets, reinforcing its leadership in data-driven mobility solutions.
Altron FinTech: Powering Financial Inclusion
Altron FinTech emerged as a standout performer, with revenue up 17% to R1.3 billion and EBITDA soaring 38% to R457 million.
The division’s success lies in its proprietary payment platforms, which simplify digital transactions for merchants of all sizes, from informal traders to large enterprises. By integrating seamlessly with multiple payment systems and leveraging data analytics for smarter credit assessments, Altron FinTech is driving financial inclusion, particularly in underserved microfinance markets.
Altron HealthTech: Innovating with Data-Driven Healthcare
Altron HealthTech achieved 6% revenue growth (R397 million) and a 15% rise in EBITDA (R122 million), supported by its expanding footprint in private and corporate healthcare.
The division is harnessing its vast health records database to develop AI-powered diagnostic tools and predictive analytics, positioning itself as a key player in South Africa’s digital health transformation.
Turnaround Successes and Resilient Performances
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Altron Security saw a 13% EBITDA increase to R114 million, driven by higher-margin managed services.
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Altron Document Solutions, now classified as a continuing operation, staged a remarkable turnaround, posting R84 million in EBITDA compared to a R74 million loss the previous year.
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Altron Arrow maintained steady profitability (R69 million EBITDA) despite global supply chain challenges in electronics distribution.
Strategic Investments and Strong Cash Flow
Altron’s financial strength was further highlighted by a 7% increase in operating cash flow to R1.7 billion, allowing the company to reduce net debt to R113 million (down from R313 million).
The group invested R708 million in growth initiatives, including R442 million in Netstar’s expansion and R31 million in Altron FinTech’s platform enhancements, all funded through internal cash generation.
Looking Ahead: Sustainable Growth and Shareholder Value
With a 60-year legacy of innovation, Altron is well-positioned to capitalize on digital transformation trends across industries.
The company’s high-margin annuity revenue streams, coupled with strategic investments in AI, IoT, and fintech, provide a solid foundation for future growth.
As Altron continues to optimize its portfolio and expand its market share, shareholders can expect sustained value creation in the years ahead.
