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Press Release

Altron interim results confirm strong market position

JSE-listed technology company Altron has posted its interim results for the six months ending August 2022, which demonstrate that the company performed well in a competitive industry despite South Africa’s economic challenges.

Key highlights

Revenue up by 15% to R5.3 billion
Net profit after tax improved by 420%
HEPS increased >460% to 34 cents per share
Continuing operations HEPS increased >240% to 41 cents per share
Dividend increased to 16c from 7c year-on-year, up >125%
Continuing operations revenue up 21% to R4.6bn
Continuing operations net profit after tax of R144m up >240%

Altron Group Chief Executive, Werner Kapp, said: “As a Group, we delivered 15% revenue growth, operating income growth of 57%, while decreasing our net working capital by R47 million. This equates to headline earnings per share (HEPS) growth of just over 460% for the period. Our net debit as a ratio of EBITDA remains consistent, indicating that we have managed to retain a healthy balance sheet during this period while generating higher revenues and operating income.”

Altron is in the advanced stages of the disposal of its banking business from Altron Managed Solutions. In the first half-year, Lawtrust recorded an EBITDA contribution in excess of the original business case, showing that it has been successfully integrated into the Altron Security business.

“We are not immune to the climate of uncertainty, global supply chain constraints and inflationary pressures that all of us are subjected to daily. The continued global supply chain shortages, which result in longer lead times, inflated prices and a shortage in electronic components impact revenue pressure in our Digital Transformation segment, resulting in margin squeeze due to increased prices,” said Kapp.

Loadshedding, high inflation and currency depreciation impacted both the demand and supply side of the Netstar business.

Kapp said he is rolling up his sleeves to help management in one of two businesses to address short term headwinds.

“We have some exceptional assets across our business segments that are market leaders in high growth areas, our performance in the first six months despite tough trading conditions is a testament to that. Altron is an iconic South African company with great assets that can enhance the Digital Transformation journey of our customers and touch the lives of many South Africans.”
//ENDS

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