Wrap Text
Unaudited Consolidated Results for the six months ended 31 August 2025 and Cash Dividend Declaration
Altron Limited
Registration number 1947/024583/06
(Incorporated in the Republic of South Africa)
Share code: AEL
ISIN: ZAE000191342
("Altron" or "Group" or "the Company")
Unaudited consolidated results for the six months ended 31 August 2025 ("H1 FY26") and cash dividend declaration
SALIENT FEATURES
- Continuing operations(1) revenue of R4.8 billion, down 1%. Group revenue down 4% to R4.9 billion.
- Continuing operations(1) earnings before interest, tax, depreciation and amortisation ("EBITDA") of
R938 million, up 4%. Group EBITDA up 2% to R905 million.
- Continuing operations(1) operating profit of R549 million, up 15%, positively impacted by the change in
depreciation policy in Netstar. Group operating profit up 11% to R516 million.
- Continuing operations(1) headline earnings per share ("HEPS") of 96 cents, up 22%. Group HEPS up 18%
to 87 cents.
- Continuing operations(1) earnings per share ("EPS") of 84 cents, up 12%. Group EPS down 6% to 66 cents,
impacted by the Altron Nexus loss.
- Interim dividend of 48 cents, an increase of 20%.
CONTINUING OPERATIONS(1) GROUP
(including discontinued operations(2)
R million H1 FY26 H1 FY25 % change(3) H1 FY26 H1 FY25 % change(4)
Revenue 4 825 4 868 (1%) 4 914 5 104 (4%)
EBITDA(3) 938 905 +4% 905 891 +2%
Operating profit(3) 549 477 +15% 516 463 +11%
Net profit after tax 330 298 +11% 258 276 (7%)
HEPS 96 cents 79 cents +22% 87 cents 74 cents +18%
EPS 84 cents 75 cents +12% 66 cents 70 cents (6%)
Dividend 48 cents 40 cents +20%
Notes
1. Continuing operations include Netstar, Altron FinTech, Altron HealthTech, Altron Digital Business, Altron Security,
Altron Document Solutions, Altron Arrow and excludes Altron Nexus.
2. Discontinued operations includes Altron Nexus which was sold on 1 August 2025.
3. Capital Items excluded from EBITDA and operating profit, comprise loss and costs on disposals, impairments, capital
rental devices written off, and lease modifications and terminations where applicable.
4. All growth rates quoted are year-on-year and refer to the six months ended 31 August 2025 compared to the six months
ended 31 August 2024, unless stated otherwise.
KEY BUSINESS DEVELOPMENTS
- Netstar continued its growth trajectory with subscribers growing by 11% to 2.1 million. The South Africa
business delivered strong results, with the turnaround in Australia expected to return that business to
profitability and make a positive contribution in the second half and for the full year of FY26. EBITDA
increased by 10% and operating profit by 54%, positively impacted by the change in depreciation policy to
more closely align with the new proven useful lives of capital rental assets and industry standards.
- Altron FinTech continued its strong performance, growing revenue 24%, EBITDA by 18% and operating
profit by 20%. This was mainly driven by ongoing success in attracting new small and medium-sized
enterprises ("SME") customers to its collections and payment platform, supported by strong growth in sales
and rentals of point-of-sale ("POS") devices, and the related transaction throughput.
- Altron Digital Business has had a challenging half-year in a muted IT investment environment. It has
implemented a profit improvement strategy and remains focused on executing current mandates and
growing market share.
- Altron continues to invest in growth with R342 million growth capital expenditure in the period, focused
primarily on Netstar, Altron FinTech, and systems and platforms.
- Altron recently launched its AI Factory, providing South African companies with enterprise-level AI
infrastructure and services, enabling them to build cutting-edge AI solutions and innovate at a competitive
price on an as-a-service basis.
Commenting on the results CEO Werner Kapp said, "I am pleased with this period's strong financial
performance in the challenging economic environment. I am particularly encouraged by the growth and returns
in our Platforms segment, which we continue to invest behind to support Altron's strategy. Our strong financial
position and cash flow generation have allowed us to increase the interim dividend by 20%."
DETAILED FINANCIAL OVERVIEW
The positive momentum from the 2025 financial year carried into H1 FY26, with Altron delivering another strong
set of results. Revenue from continuing operations declined by 1% to R4.8 billion, reflecting the challenging
environment in the IT Services and Distribution businesses; however, this was offset by robust growth in the
Platforms segment. Group revenue, including discontinued operations, fell by 4% due to a lower contribution
from Altron Nexus in these results.
EBITDA from continuing operations increased by 4% to R938 million, while Group EBITDA rose by 2% to R905
million. At the operating profit level, continuing operations saw a 15% growth to R549 million, with Netstar, Altron
FinTech, Altron HealthTech, and Altron Document Solutions all contributing significant double-digit growth.
Operating profit was positively impacted by the change in Netstar's depreciation policy. The Group achieved a
11% rise in operating profit to R516 million.
The Group remains highly cash-generative and well-capitalised, providing a robust foundation and flexibility for
executing its immediate strategic initiatives. Cash dividend for the period was increased by 20% to 48 cents per
share, reflecting the strong growth in headline earnings.
Segmental overview
Altron organises its businesses into the following operating segments, in line with its strategy to be the leading
platforms and IT services company in its chosen markets:
- Platforms: Netstar, Altron FinTech, and Altron HealthTech.
- IT Services: Altron Digital Business, Altron Security and Altron Document Solutions.
- Distribution: Altron Arrow.
- Other: Consolidation and other international operations
Altron Nexus was classified as held-for-sale in discontinued operations up to the date of its disposal on 1 August
2025.
CONTINUING(1) OPERATIONS
R million H1 FY26 H1 FY25 % change(4)
REVENUE
Platforms 2 179 1 943 +12%
IT Services 2 410 2 597 (7%)
Distribution 288 376 (23%)
Other (52) (48) (8%)
EBITDA(3)
Platforms 881 776 +14%
IT Services 92 157 (41%)
Distribution 19 35 (46%)
Other (54) (63) +14%
OPERATING PROFIT(3)
Platforms 547 415 +32%
IT Services 61 120 (49%)
Distribution 18 35 (49%)
Other (77) (93) +17%
Platforms
The Platforms segment grew revenue by 12% to R2.2 billion, with EBITDA growing 14% to R881 million and
operating profit up 32% to R547 million.
- Netstar revenue rose 8% to R1.2 billion, EBITDA grew 10% to R540 million, and operating profit increased
54% to R225 million.
- Netstar continued to grow its market share with the subscriber base growing 11% to 2.1 million.
248 000 gross subscribers were added during the period, with 81 000 net subscriber additions. Consumer
subscribers increased by 8%, while higher-margin enterprise customers grew by 16%. Churn, excluding
original equipment manufacturer ("OEM") partnerships, increased marginally from 17% to 18%.
- Key operational metrics were maintained above target levels, with contract fulfilment rate and pre-
fitment conversion rate above 90% and 60% respectively.
- Netstar revised its depreciation policy at the start of the financial year, increasing the depreciation period
for eligible capital rental devices from three to an average of five years, based on an independently
calculated useful life assessment. This adjustment better aligns the depreciation pattern of these assets
with their economic lifespan and industry norms. As a result, the depreciation expense was
approximately R65 million lower for the period than it would have been under the previous policy.
Excluding the change in depreciation policy, Netstar's operating profit increased by 10%.
- Altron FinTech increased its revenue by 24% to R750 million, driven by ongoing success in attracting new
SME customers to its collections and payment platform and expanding its customer base by over 40%, with
the number of debit orders reaching 20 million, and value thereof reaching R 24 billion, both increasing by
more than 30%. In the Integrated Transaction Solutions business, sales and rentals of POS devices saw
strong growth, with the related transaction throughput growing over 30%. EBITDA rose by 18% to R274 million,
while operating profit grew by 20% to R257 million.
- Altron HealthTech revenue remained flat at R201 million, while EBITDA increased by 21% to R67 million,
and operating profit grew by 20% to R65 million. Annuity revenue rose by 12%, supported by double-digit
growth in both corporate and private practice network licence revenues and stable switching volumes. This
was offset by a decline in project revenues. The adoption of data-driven services continues, particularly with
the oncology solution, as well as an encouraging pipeline in the financial services market.
IT Services
The IT Services segment revenue decreased 7% to R2.4 billion. EBITDA decreased by 41% to R92 million, with
operating profit down 49% to R61 million.
- Altron Digital Business revenue decreased by 10% to R1.5 billion. The IT Services industry remains muted,
with the major corporate and public sector IT spenders delaying IT investments in this economic
environment. Pressure was also felt from changes to OEM partner rebate structures implemented in
January 2025. EBITDA decreased to a loss of R32 million from a profit of R47 million, and operating profit
dropped from R34 million to an operating loss of R42 million. Altron Digital Business has implemented a
profit improvement strategy aimed at removing R150 million from its cost base, the full impact of which will
be felt in FY27. Altron Digital Business remains focused on executing its current mandates and growing
market share. Altron Digital Business remains well-positioned for any upturn in the IT services industry.
- Altron Security revenue increased 2% to R252 million, with growth in software and managed services
revenue offset by a pullback in integration and professional services. A change in agency versus principal
mix reduced margins slightly, leading to EBITDA dropping 2% to R78 million. Operating profit increased 6%
to R70 million, benefiting from a lower depreciation charge this period.
- Altron Document Solutions revenue decreased 5% to R697 million, EBITDA increased 53% to R46 million,
and operating profit increased 65% to R33 million. The Africa business experienced top-line pressure, and
changes in buying patterns were observed, with customers seeking more cost-effective and digitally
enabled solutions. The A4 and eco-range of refurbished printers performed well, and software and digital
solution sales more than doubled. EBITDA margins expanded by 2%, driven by the shift in sales mix and
the profit improvement strategy implemented in FY2024 and FY2025.
Distribution
Altron Arrow reported revenue of R288 million, down 23%. As previously guided, the electronic component
distribution industry has entered a global cyclical downturn, impacting the top line. EBITDA decreased 46% to
R19 million, with operating profit down 49% to R18 million.
Discontinued operations
Altron Nexus was sold during the period, effective 1 August 2025. Altron Nexus contributed revenue of R89
million, and an EBITDA and operating loss of R32 million for the period.
Capital structure and working capital
The Group continued to generate strong operating cash flows of R762 million from Continuing operations(1),
with net cash of R324 million (excluding merchant cash R187 million) on hand at 31 August 2025, after loan
repayments of R425 million and dividend payments of R201 million.
The Group invested R370 million in capital expenditures, of which R342 million supported growth initiatives.
This includes R216 million investment in Netstar's capital rental devices, R32 million in Altron FinTech capital
rental devices, and new initiatives including the AI Factory and HealthTech Oncology solutions of R28.7 million.
Working capital increased by R109 million to R1.5 billion, reflecting the growth in the Platforms segment and
timing differences in IT Services.
INTERIM DIVIDEND
The Board approved a 20% increase in the interim dividend to 48.00 cents per share (38.40 cents net of 20%
dividend withholding tax) for the six months ended 31 August 2025. This dividend will be payable to shareholders
registered with the Company as of the close of business on the record date listed below.
The Board confirmed that the solvency and liquidity test as contemplated by the Companies Act, No. 71 of 2008,
as amended, has been duly considered, applied, and satisfied. This is a dividend as defined in the Income Tax
Act, No. 58 of 1962 and is payable from income reserves. The income tax number of the Company is
9725149711.
The number of ordinary shares in issue at the date of this declaration is 412 859 653, including 30 837 778
treasury shares.
The key dates related to the interim dividend are as follows:
DIVIDEND DATES 2025
Last day to trade cum dividend Tuesday, 18 November
Commence trading ex-dividend Wednesday, 19 November
Record date Friday, 21 November
Interim Dividend Payment date Monday, 24 November
Share certificates may not be dematerialised or re-materialised between Wednesday, 19 November 2025 and
Friday, 21 November 2025, both days inclusive.
OUTLOOK
Commenting on the outlook, CEO Werner Kapp said, "We anticipate ongoing challenges for IT Services in the
near term. Our priority remains investing in our Platforms, which deliver significant value for shareholders. We're
focused on executing our strategy, managing capital efficiently, making strategic investments, and driving
sustainable, profitable growth to enhance long-term shareholder value."
INTERIM RESULTS PRESENTATION
An investor presentation will be hosted virtually via webcast at 9:30am CAT on 3 November 2025, to present
the Group's financial results for the six months ended 31 August 2024. Registration to attend the webcast can
be accessed via the following link: https://78449.themediaframe.com/links/altron251103.html
SHORT FORM ANNOUNCEMENT
The condensed results for the six month period ended 31 August 2025 are unaudited.
This short-form announcement is the responsibility of the Board of Directors and does not contain full or
complete details.
Any investment decisions by investors and/or shareholders should be based as a whole on consideration of
the Group consolidated interim financial statements which can be found on the Company's website at:
www.altron.com and on the JSE cloudlink at: https://senspdf.jse.co.za/documents/2025/jse/isse/aele/H1FY26.pdf
Copies of the full announcement may also be requested from Company.secretary@altron.com.
FURTHER INFORMATION
This short-form announcement may contain forward-looking statements that relate to Altron's future operations
and performance. Such statements have not been reviewed or reported on by the Company's external auditors
and are not intended to be interpreted as guarantees of future performance, achievements, financial or other
results. They rely on future circumstances, some of which are beyond management's control, and the outcomes
implied by these statements could potentially be materially different from future results. No assurance can be
given that forward-looking statements will be accurate; thus, undue reliance should not be placed on such
statements.
For and on behalf of the Board.
Mr. S van Graan Mr. W Kapp Mr. C Snyman
Chairman Group Chief Executive Chief Financial Officer
Registered Office
Altron Campus, 20 Woodlands Drive, Woodlands Office Park, Woodmead, Gauteng, South Africa, 2191
JSE Equity Sponsor
Investec Bank Limited
Transfer Secretaries
Computershare Investor Services Proprietary Limited, 1st Floor, Rosebank Towers, 15 Biermann Avenue,
Rosebank, 2196
Directors
Mr. S van Graan (Chairman)#, Mr. W Kapp (Group Chief Executive)*, Mr. C Snyman (Chief Financial Officer)*,
Mr. G Gelink#, Dr. P Mnganga#, Ms. S Rapeti#, Mr. G Kouteris#, Mr. H Christophers#, Ms. N Siyotula#,
Mr. T Ngara**, Mr. A Ball**, Mr. B Dawson**
*Executive Director
** Non-Executive Director
# Independent Non-Executive Director
Group Company Secretary
Ms. M Ngcobo
3 November 2025
Johannesburg
Date: 03-11-2025 07:15:00
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