Altron has issued a voluntary operational update commenting on the five months ended 31 July 2026 compared to the same period in 2025.
Trading and operational performance for the period has been broadly in line with management expectations, and the group expects trading for HY27 to follow a similar trend.
The Platforms segment delivered high-single-digit revenue growth.
IT Services delivered modest revenue growth, which was 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.
This is in line with the strategic portfolio transformation Altron has undertaken over the past three years, as it evolves into a multi-platform business positioned for sustainable growth in South Africa’s digital economy.
The group’s deployment of capital into higher-margin, annuity-based growth opportunities continued in HY27, with the contribution from the Platforms segment increasing further to about 45% of group revenue, while accounting for about 95% of operating profit.
This mix is expected to be sustained through the 12 months ending 28 February 2027, reflecting the ongoing shift towards a higher-quality earnings profile.
In FY27, Altron expects a similar pattern to the months ending 28 February 2026, with a stronger performance in the second half of FY27.
Group EBITDA and operating profit increased by low-to-mid-teen percentages, underpinned by continued operational discipline and operating leverage, enabling the conversion of revenue growth into stronger earnings growth.
The profit growth has been achieved while absorbing deliberate growth investments in Netstar – including platform modernisation and customer acquisition initiatives, and Altron FinTech’s expansion in the SME market.
Operating margins across the group remain resilient, supported by the structural shift toward annuity-revenue businesses and disciplined cost management.
Operating profit margin has expanded on a year-to-date basis, reflecting both the operating leverage inherent in the Platforms portfolio as scale increases and improved profitability within the IT Services segment.