Altron expects big jump in full-year earnings

Published: 2025-02-24 07:55 +02:00 by Duncan McLeod tag: IT services

Altron Group expects to report a more than 40% improvement in headline earnings per share from continuing operations.

Altron Group CEO Werner Kapp

Altron Group said on Monday that it expects to report a more than 40% improvement in headline earnings per share (Heps) from continuing operations for the year ended 28 February 2025.

In a trading statement and operational update, Altron — which is led by group CEO Werner Kapp — said Heps are expected to improve by at least 41c from the R1.03 reporting in the same period a year ago.

“Altron’s focus on customer obsession, disciplined strategy execution and profit improvement strategies have driven continued positive momentum into the second half of the reporting period. This has led to a strong year-to-date performance, reflecting improvement over the comparative period, which was negatively impacted by provisions and impairments,” Altron said in a statement to investors.

“Continuing operations, adjusted for the sale of the ATM business, delivered low single-digit year-to-date revenue growth, with strong double-digit growth in Ebitda and operating profit, demonstrating delivery of improved efficiency and operating leverage across the business,” it added, referring to earnings before interest, tax, depreciation and amortisation.

Key numbers

Altron said key financial and operational numbers from the 2025 financial year include:

Netstar surpassed two million subscribers, driving revenue growth and double-digit increases in Ebitda and operating profit. However, performance was impacted by softer trading conditions in the second half of the year, dragged down by Netstar’s Australian operations, which are projected to report a full-year loss. Altron FinTech reported double-digit growth in revenue, Ebitda and operating profit. Altron HealthTech grew year-to-date revenue, with double-digit increases in Ebitda and operating profit. Altron Digital Business, adjusted for the sale of the ATM business, maintained flat year-to-date. Full-year Ebitda and operating profit are expected to be weaker than in 2024 due to reduced spending by two large customers in the first half of the year and non-recurring project expenses related to historic contracts. Altron Security continued to benefit from corrective actions implemented a year ago, achieving “modest” year-to-date growth in Ebitda and operating profit. Revenue is expected to fall, however. Altron Document Solutions has been successfully and fully reintegrated into continuing operations. Ebitda and operating profit are expected to tick up on stable revenue. Altron Arrow revenue is expected to fall due to a cyclical slowdown in electrical component distribution. Altron Nexus, which is accounted for as a discontinued operation, will report an improvement in its performance, but will still report a loss, reflecting weaker trading conditions in the second half of the year.

Read: Altron’s new BEE deal involves a big move to plug the ICT skills gap

Altron said it expects to publish its full-year results in late May. Its share price closed on Friday at R21.50. Over the past year, it has added 119% to its value, making it one of the best-performing shares on the JSE. Over three years, the shares have jumped by nearly 200%. – © 2025 NewsCentral Media

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