Altron interim financial results for the six months ended 31 August 2025

Focused strategy execution continues to drive Altron’s profitability

JSE-listed technology group Altron has delivered a strong set of results for the six months ended 31^st August 2025, growing profits and rewarding shareholders with a 20% increase in its interim dividend.

Group operating profit from continuing operations increased 15% to R549 million, driven by an excellent performance in the Platforms segment, with headline earnings per share from continuing operations climbing 22% to 96 cents. A tough trading environment in IT services led to a 1% decline in group revenue to R4.8 billion, however despite the decline, the company’s focus on higher margin annuity revenue streams resulted in further improvements in profitability.

Commenting on the results, CEO Werner Kapp said, “I am pleased with this period’s strong financial performance in a challenging economic environment. I am particularly encouraged by the growth and returns in our Platforms segment, which we continue to invest behind in line with our strategy. Our strong financial position and cash flow generation have allowed us to increase our interim dividend.”

Business highlights

• Netstar continues to gain momentum with subscribers up 11% to 2.1 million. Revenue grew 8% to R1.2 billion, and operating profit rose by 54% to R225 million, positively impacted by the change in depreciation policy. The South African operations delivered a very strong performance, with Netstar’s Global Fleet Bureau and the extension of the innovative StarTag product range enhancing its value proposition beyond traditional tracking. While Australia faced some headwinds, the team has implemented corrective actions that are already showing positive results.
• Altron FinTech delivered another excellent performance, with 24% revenue growth and a 20% increase in operating profit to R257 million, driven by growing demand from small and medium enterprise customers for its collections and payment platform, as well as strong rentals and sales of point-of-sale devices.
• Altron HealthTech revenue remained flat at R201 million, with double-digit growth in platform licence fees offset by lower corporate project revenues for the period. Operating profit grew by 20% to R65 million. The encouraging adoption of data-driven services continues, including the recent launch of South Africa's first oncology companion app, ThriveLink, assisting cancer patients with seamless care coordination and easing administrative burdens.
• Altron Digital Business faced a challenging half-year due to muted IT spending by major South African enterprises. Revenue declined 10% and the business posted an operating loss of R42 million. The business has taken corrective action to return to profitability and remains well-positioned for an upturn in the IT services industry with revised go-to-market strategies and enhanced sales leadership teams.
• Altron Security revenue increased 2% to R252 million, with good growth in software and managed services increasing annuity revenues. Operating profit increased 6% to R70 million.
• Altron Document Solutions increased its operating profit by 65% to R33 million, despite a revenue decrease of 5% to R697 million. Altron Document Solutions has adapted well to changing market dynamics, developing its eco-range and digital solutions, leading to strong results as customers seek more cost-effective and secure ways to digitise, automate, and manage business information.
• Altron Arrow was impacted by the global slowdown in the electronic component distribution sector, with revenue falling 23% and operating profit falling 49% to R18 million.
• Altron recently launched South Africa’s first operational AI Factory, providing South African companies with enterprise-level AI infrastructure and services while maintaining data sovereignty and regulatory compliance. The platform is currently live with five launch customers, which include Dataviue, Lelapa AI, and MathU.

Investing for growth

Altron invested R370 million in capital expenditure during the period, of which R342 million was directed to growth initiatives, including investments in capital rental devices in Netstar and Altron FinTech, as well as new ventures such as the Altron AI Factory and the expansion of Altron HealthTech’s oncology solution to include a patient app.

Kapp added, “We are focused on executing our strategy, managing capital efficiently, making strategic investments, and driving sustainable, profitable growth to enhance long-term shareholder value. I am exceptionally proud of the Altron leadership team and all our people for consistently delivering improving results in the current demanding environment.”

Results presentation

An investor presentation will be hosted at 09h30 on 3 November 2025 to present the Group's financial results for the six months ended 31 August 2025. A webcast of the presentation can be accessed via the following link: https://78449.themediaframe.com/links/altron251103.html

The results announcement on SENS can be accessed at: https://altron-investors.com/sens-announcements.php

Notes

1. Continuing operations include Netstar, Altron FinTech, Altron HealthTech, Altron Digital Business, Altron Security, Altron Document Solutions, Altron Arrow and excludes Altron Nexus.

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