Altron share price rises sharply after profit improvement continued into first half
ALTRON increased 6.5% yesterday on the JSE after it said headline earnings a share would be at least 20% higher than in the six months to August 31, 2023, as momentum from last year’s profit improvements continued.
The share traded at R17.87 yesterday afternoon.
The price has recovered well from the R7.65 it was trading at a year ago. At the last year-end to February 29, 2024, an improvement in the second half results was reported after profit improvement strategies were implemented.
Yesterday the group said in a trading statement that “this positive momentum has continued into the 2025 financial year, leading to a stronger year-to-date performance in comparison to the comparative period, which was negatively impacted by provisions and impairments
raised.”
The group’s Own Platforms segment had delivered a strong yearto-date performance with Altron
FinTech, Altron HealthTech and Netstar growing revenue, with notable growth also in earnings before interest, tax, depreciation and amortisation (Ebitda) and operating profit.
In the IT Services segment, the Altron Digital business saw year-todate revenue growth in line with the market, as early benefits of the new sales operating model started taking effect.
Ebitda and operating profit were expected to be softer, due to nonrecurring project expenses relating to historic contracts which had been closed and some project delays.
Altron Security’s performance benefited from the corrective actions taken in last year’s second half, with the expectation of modest growth in Ebitda and operating profit.
Altron Arrow planned to maintain its operating profit margin but revenue was anticipated to be softer due to the cyclical global slowdown in electrical component distribution.
In the group’s discontinued businesses segment, in the comparative period, both Altron Document Solutions and Altron Nexus were restructured and the management teams strengthened.
Profit improvement strategies were implemented to improve cash flow and return these businesses to profitability. Active disposal processes were run for both businesses.
Offers received for Altron Document Solutions were below the board’s assessment of value. As a result, the board decided to retain Altron Document Solutions in the group.
“Despite historically being heldfor-sale, Altron Document Solutions remains an attractive business. It is supported by a robust customer base and long-term contracts that generate sizeable annuity revenue, with strong support from its partner, Xerox Limited,” the group said.
Altron Document Solutions’ profit improvement strategy had continued into the 2025 financial year, resulting in year-to-date growth in revenue, Ebitda and operating profit.