Altron has reported strong growth in profitability for the financial year ended 28 February 2025.
Revenue of R9,6-billion is flat compared to last year, but the group reported a 27% increase in earnings of R1,8-billion before interest, tax, depreciation and amortisation (EBITDA), and a R972-million operating profit, up 50%.
Altron CEO Werner Kapp comments: “This year’s strong results reflect the disciplined execution of our strategy, despite heightened economic and political uncertainty.
“Our high annuity revenue base provides a solid foundation, with our Platforms segment remaining a key growth driver, delivering double-digit revenue and profit growth. This consistent performance has strengthened our financial position and enabled us to deliver meaningful value to our shareholders.”
The Platforms segment, where the group has allocated capital to support strategic growth, underpinned the performance, delivering a 12% increase in revenue, a 23% increase in EBITDA and a 30% increase in operating profit. HEPS increased to 178 cents from 103 cents, with EPS at 156 cents, up from 95 cents last year.
Group revenue declined 4%, impacted by the sale of the ATM Business and reduced revenue from Altron Nexus following its restructuring.
Group EBITDA increased 69% to R1,7-billion and operating profit more than tripled to R817-million.
Subsequent to year-end, the group entered into a sale and purchase agreement with a consortium that includes members of Altron Nexus’ management team for the sale of Altron Nexus, the group’s remaining discontinued operation. The MBO Transaction is subject to the fulfilment of conditions precedent, which are targeted to be fulfilled by 30 June 2025.
The group remains highly cash-generative and well-capitalised, growing net cash and cash equivalents 58% to R993-million, providing a strong foundation for executing its immediate and medium-term strategic initiatives.
From 1 March 2024 the group reorganised into the following operating segments:
* 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.
The Platforms segment grew revenue by 12% to R4-billion, with EBITDA growing 23% to R1,5-billion and operating profit increasing 30% to R798-million.
The IT Services segment generated revenue of R5,1-billion, down 6%, primarily due to the sale of the ATM Business. Excluding the ATM Business, IT Services reported flat revenue growth. EBITDA improved 40% to R307-million and operating profit increased to R230-million, up from R131-million. Prior year performance was negatively impacted by a R95-million provision raised in Altron Document Solutions.
The electronics component distribution industry entered a global cyclical downturn, with inventory levels normalizing to pre-Covid levels, impacting Altron Arrow’s financial performance. Revenue declined 17% to R669-million. However, disciplined cost management resulted in EBITDA and operating profit remaining flat at R69-million and R67-million, respectively. Despite the slowdown, Altron Arrow increased market share by 4%, supported by its continued focus on customer engagement and innovative technology solutions.