Altron shares had a healthy trading session on Monday as the group said it expects to report earnings that are up to 24% higher for the half year to August.
The group will report headline earnings between 92c and 98c a share from its continuing operations for the six-month period. This translates to an increase of between 16% and 24% from the 79c per share reported in the previous comparable period.
Continuing operations include Netstar, Altron FinTech, Altron HealthTech, Altron Digital Business, Altron Security, Altron Document Solutions and Altron Arrow, and exclude Altron Nexus, which was recently sold off.
Group headline earnings per share, reported at 74c in the prior period, are expected to be between 83c and 88c, an increase of up to 19%. The group did not provide specific details about the reasons for the increase.
However, the group did say in August that the operating environment for IT services had been “appreciably more challenging” both globally and in SA, characterised by constrained budgets and restricted consumer spending.
In a voluntary trading statement at the time, Altron said its first-half revenue was expected to be marginally softer, with continuing operations flat for the period.
Group earnings before interest, taxes, depreciation and amortisation (ebitda) were expected to be at a similar level to the first half of the 2025 financial year, with operating profit reflecting single-digit growth for the period, it said.
However, the group benefited from its diversified portfolio, which has mitigated the effect of difficult market conditions in IT services.
Altron is boosting its annuity revenue streams as it sees these as more profitable and a good way to predict future finances.
It is set to report its interim earnings on November 3.
At 4pm, Altron shares were up 1.5% at R19.06 after earlier being 4% ahead.
With Jacqueline Mackenzie
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