Despite increasingly tough trading conditions the Altron Group reported improved revenue and profitability from continuing operations for the six months ended 31 August 2023. On the back of this improved performance and strong cash flow, Altron has increased its dividend payout ratio from a minimum of 40% to a minimum of 50% of headline earnings from continuing operations.
Effective 1 July 2023, Altron Managed Solutions sold the ATM Hardware and Support Business (the “ATM Business”). Results excluding the ATM Business are presented to compare performances on a like-for-like basis.
Salient Features – Continuing Operations
Salient Features – Group
The Altron Group results were impacted by provisions and impairments (collectively referred to as the “Non-Cash Adjustments”) raised in two non-core subsidiaries, namely Altron Nexus of R334 million, in relation to the restructuring of Altron Nexus due to the loss of the Gauteng Broadband Network contract and the City of Tshwane exposure, and Altron Document Solutions of R95 million. This includes the goodwill impairment raised at an Altron Group level of R33 million in relation to goodwill held on the balance sheet for Altron Nexus
Commenting on the results Altron Group CEO Werner Kapp said “We are executing on our strategy to become the Leading Platform and IT Services business in our chosen markets. We are in the early phases of our journey, however, the successful profit improvement strategies in Altron Systems Integration and Netstar, together with focused execution on our growth levers, have delivered pleasing results.
Operating profit in our core operations increased 25%. This positive momentum, which is yielding improved cash flow generation, combined with our strong balance sheet, allowed us to positively adjust our dividend policy to improve distributions to shareholders.”
Altron increased its interim dividend by 56% to 25 cents per share, in line with its improved dividend policy.
Key Operational Highlights
Effective 1 March 2024, the Altron Group will simplify its operating model. Altron Systems Integration, Altron Karabina and Altron Managed Solutions will be combined to form Altron Digital Business, which alongside Altron Security will form our IT Services division. Our Own Platforms segment will remain unchanged, and Altron Arrow will fall under a new Distribution segment.
The full SENS announcement is available on the Company’s website, altron.com.
An investor presentation will be hosted virtually via webcast at 09:30 CAT on 13 November 2023, to present the Group’s financial results for the six months ended 31 August 2023. To attend the webcast please register here.
13 November 2023
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