JSE-listed technology group Altron has lifted its interim dividend by 20% even as it warns of a “tough trading environment” in IT services.
Group operating profit from continuing operations in the six months to 31 August 2025 increased 15% to R549-million, driven by an “excellent performance” in the Platforms segment, with headline earnings per share from continuing operations climbing 22% to 96c.
This was, however, tempered by the difficult trading environment in IT services, which led to a 1% decline in group revenue to R4.8-billion. Altron Digital Business posted an operating loss of R42-million.
“Despite the decline, the company’s focus on higher margin annuity revenue streams resulted in further improvements in profitability,” Altron said.
Some of the highlights of the period included:
- Netstar continued to gain momentum with subscribers up 11% to 2.1 million. Revenue grew 8% to R1.2 billion, and operating profit rose by 54% to R225-million.
- Altron FinTech delivered 24% revenue growth and a 20% increase in operating profit to R257-million, driven by growing demand from small and medium enterprise customers for its collections and payment platform, as well as strong rentals and sales of point-of-sale devices.
- Altron HealthTech revenue remained flat at R201-million, with double-digit growth in platform licence fees offset by lower corporate project revenues for the period. Operating profit grew by 20% to R65-million.
- Altron Digital Business faced a challenging half-year due to muted IT spending by major South African enterprises. Revenue declined 10% and the business posted an operating loss of R42-million.
- Altron Security revenue increased by 2% to R252-million, with good growth in software and managed services increasing annuity revenues. Operating profit increased 6% to R70-million.
- Altron Document Solutions increased its operating profit by 65% to R33 million, despite a revenue decrease of 5% to R697-million.
- Altron Arrow was impacted by the global slowdown in the electronic component distribution sector, with revenue falling 23% and operating profit falling 49% to R18-million.
Altron said its capital expenditure in the six months came to R370-million, of which R342-million was directed to growth initiatives, including investments in capital rental devices in Netstar and Altron FinTech, as well as new ventures such as the Altron AI Factory and the expansion of Altron HealthTech’s oncology solution to include a patient app.
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“We are focused on executing our strategy, managing capital efficiently, making strategic investments and driving sustainable, profitable growth to enhance long-term shareholder value,” said Altron Group CEO Werner Kapp in a statement with the financial results. – © 2025 NewsCentral Media
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