JSE-listed technology group Altron has reported an 8% decline in continuing headline earnings per share (Heps), while revenue jumped 19% to R9.5-billion for the year to end-February 2023.

The group, which is led by former Dimension Data CEO Werner Kapp, said it managed to deliver a “resilient” set of results, despite what it called “increasingly tough trading conditions”.

“Altron’s ability to deliver double-digit revenue growth is evidence of the group’s strong annuity and defensive earnings base,” it said in a statement.

However, the results were negatively affected by non-cash provisions related to exposure to a broadband contract in Pretoria and excess inventory related to another network in Johannesburg. These provisions hurt Heps; adjusted Heps was up by 19%, matching growth in the top line.

Ebitda – a measure of operating performance – from continuing operations climbed by 2% to R1.2-billion, while working capital reduced by R321-million to R1.3-billion. Cash flow generated was R974-million, with free cash flow of R412-million. Net debt was reduced.

“Altron has a strong balance sheet and remains highly cash generative with low gearing ratios, providing flexibility to pursue its growth strategy,” it said in Monday’s statement.

CEO Kapp said: “As we look into FY2024, we have a clear growth strategy against which we are executing, and we are already seeing the positive results of our profit improvement strategy in our two biggest businesses, Netstar and Altron Systems Integration.

Opportunity

“As a group, we remain focused on driving revenue growth and improving operating leverage while investing in our growth businesses… Despite continuing tough trading conditions, I am excited by the opportunity before us,” he said.

Altron approved a final dividend of 19c/share on top of the interim dividend of 16c, bring the total dividend for the year of 35c/share, up by 17% compared to last year. The shares were trading 2.9% higher on Monday morning at R8.20 apiece.

Altron also announced on Monday that its group chief financial officer, Nicholas Bofilatos, has resigned to emigrate to Europe with his wife. He has been replaced in the role by Carel Snyman, whose experience includes financial roles at Naspers, MultiChoice and Aztomix, a company he co-founded. – © 2023 NewsCentral Media