Altron expects interim results to benefit from turnaround momentum

JSE-listed technology provider Altron expects to report first-half earnings growth in the early to mid-teens.

The group said on Wednesday that HEPS for continuing operations for the six months to end-August are expected to be between 107c and 112c, an increase of 11%-17%.

Continuing operations include Altron FinTech, Netstar, Altron HealthTech, Altron Security, Altron Digital Business, Altron Document Solutions and Altron Arrow.

HEPS for group operations, which include continuing and discontinued operations, are expected to be 21%-27% higher at 105c-110c.

The first half of 2026 included earnings from Nexus for five months. Nexus was disposed of with effect from August 2025, so has no impact on the current 2027 first half.

Earlier this month the group said Altron’s platform businesses continue to grow, accounting for most of its profit, while comprising less than half of its income.

Altron has been under pressure to expand units such as Netstar after the unbundling of Bytes Technology. Its strategy is premised on “quality earnings”, underpinned by growing its base of annuity or recurring revenues and higher margin business lines in areas such as fintech.

The strategy appears to be bearing fruit, with the group saying the present period denoted a “meaningful inflection point” for its platforms: Netstar, Altron Fintech and Altron Healthtech.

In a note to investors, the group said: “Operational momentum evidenced in the prior year continued into HY27. Our Platforms segment, Altron’s growth engine, delivered high-single-digit revenue growth. IT Services delivered modest revenue growth, a notable improvement on the prior comparative period when revenue declined, resulting in overall growth in revenue from continuing operations in the low single digits.”

The contribution from the platform businesses increased further to about 45% of group revenue, while accounting for about 95% of operating profit.

In May, Business Day reported that for the year to end-February 2026, Altron’s annual profit after tax grew by one third and it declared a special dividend thanks to a strong performance from its FinTech unit and as Netstar crossed the R1bn earnings before interest, tax, depreciation and amortisation (ebitda) milestone for the first time.

Full-year 2026 operating profit grew 25% to R1.2bn and ebitda was up 10% at R2bn, while profit after tax rose 32%. Cash generated from operations was R1.9bn.

HEPS rose 34% to 239c and a final dividend of 72c per share was declared, taking the total dividend for the year to 120c. Shareholders were also rewarded with a special dividend of 120c, reflecting strong cash generation and balance sheet strength.