Today the Altron Group reported resilient annual results for the 12-month period ended 28 February 2023. Despite increasingly tough trading conditions, Altron’s ability to deliver double-digit revenue growth is evidence of the Group’s strong annuity and defensive earnings base. Results for continuing operations were negatively impacted by non-cash provisions, relating to the City of Tshwane exposure and for excess inventory held in relation to the Gauteng Broadband Network contract which was not renewed.
– Continuing Revenue up by 19% to R9.5 billion;
– Continuing EBITDA up 2% to R1.2 billion;
– Continuing EPS up 80% to 36 cents per share;
– Continuing HEPS down 8% to 47 cents per share;
– Continuing Adjusted EBITDA up 11% to R1.3 billion;
– Continuing Adjusted HEPS up 19% to 89 cents per share;
– Continuing Adjusted EPS up 79% to 77 cents per share;
– Group working capital reduced by R321 million to R1.3 billion;
– R974 million of cash flow generated from the Group, with free cash flow of R412 million; and
– Net Debt: EBITDA at 0.22 times, down from 0.36 times at FY2022.
Altron has a strong balance sheet and remains highly cash generative with low gearing ratios, providing flexibility to pursue its growth strategy.
Commenting on the results Altron Group CEO Werner Kapp said “Altron’s revenue growth of 19% demonstrates our resilience in the face of extremely tough economic conditions. As we look into FY2024, we have a clear growth strategy against which we are executing, and we are already seeing the positive results of our profit improvement strategy in our two biggest businesses Netstar and Altron Systems Integration. As a Group, we remain focused on driving revenue growth and improving operating leverage whilst investing in our growth businesses. Customer obsession is at the core of our strategy as we partner with our customers on their digital transformation journeys, whilst also protecting them from increased cyber security risks. Despite continuing tough trading conditions, I am excited by the opportunity before us.”
Mr Nicholas Bofilatos, has resigned as Group Chief Financial Officer, having made the decision to permanently move to the Netherlands where his wife has settled into a job opportunity that she accepted twelve months ago. We have appointed Mr Carel Snyman as the new Chief Financial Officer for the Altron Group. Mr. Snyman is a qualified CA (SA) with over 20 years of financial experience, including significant experience as a financial executive at Naspers, Chief Financial Officer at MultiChoice Africa and, more recently, as the Chief Financial Officer at Aztomix Proprietary Limited, a company he co-founded. As a CA (SA) with significant technology and entrepreneurial experience, locally and internationally, Mr Snyman has the right experience, skills and high-performance culture required to drive Altron’s growth strategy.
Altron approved a final dividend of 19 cents on top of the interim dividend of 16 cents. The total dividend for the year of 35 cents per share is up 17% compared to last year.