Altron expects to report a rise in full-year headline earnings from continuing operations, the technology group said in a second trading update for the period on Friday.
Altron, valued at R4.66bn on the JSE, has slimmed down operations over the years, selling units it no longer considered core.
Headline earnings per share (HEPS) from continuing operations, which strip out the effects of one-off financial events, for the year to end-February is estimated to be 115c-117c, an increase of 35%-38% compared with the previous comparative period.
Continuing operations exclude Altron Documents Solutions, Altron Nexus and the Rest of Africa business.
Overall, group headline loss per share is estimated to be 24c-26c, compared with HEPS of 29c reported previously, largely due to noncash adjustments raised in the six months ended August 2023.
The group’s interim results were negatively affected by provisions and impairments totalling R462m. These noncash adjustments were raised within two discontinued operations — Altron Nexus (R334m) and Altron Document Solutions (R95m). This included an impairment raised at group level of R33m, related to goodwill held for Nexus on its balance sheet.
The technology firm put the Nexus unit up for sale in July 2023 after losing the lucrative Gauteng Broadband Network contract to MTN. Having implemented the first two phases of the project, there was an expectation it would be awarded the third phase, but this did not happen.
Altron Nexus was first awarded a R1.2bn contract in 2014 to build a 1,600km high-speed fibreoptic network in Gauteng as part of the national government’s broadband target to achieve full connectivity in the province by 2030.
In early 2022, the group sold its Document Solutions unit for R715m. However, the deal fell through earlier in 2024.
Altron shares are 15.36% firmer since the start of 2024. The stock was marginally up 0.18% at R11.32 on Friday.
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