Technology group Altron has reported an 11% increase in profit from continuing operations at the halfway stage as a strong performance for its Platforms unit offset a challenging environment in the IT Services and Distribution businesses.
Revenue from continuing operations, including Netstar, Altron FinTech, Altron HealthTech, Altron Digital Business, Altron Security, Altron Document Solutions, Altron Arrow, was down 1% to R4.82bn in the six months to end-August.
Earnings before interest, tax, depreciation and amortisation (ebitda) from continuing operations increased by 4% to R938m.
Headline earnings per share (HEPS) were 22% higher at 96c and an interim dividend of 48c per share was declared, up 20% from the previous year.
“I am pleased with this period’s strong financial performance in the challenging economic environment. I am particularly encouraged by the growth and returns in our Platforms segment, which we continue to invest behind to support Altron’s strategy,” said CEO Werner Kapp said.
“Our strong financial position and cash flow generation have allowed us to increase the interim dividend by 20%,” he said.
Netstar continued its growth trajectory with subscribers growing by 11% to 2.1-million. The SA business delivered strong results, with the turnaround in Australia expected to return that business to profitability and make a positive contribution in the second half of the year.
Altron FinTech continued its strong performance, growing revenue 24% and ebitda by 18%, mainly driven by success in attracting new small and medium-sized enterprise customers to its collections and payment platform.
However, Altron Digital Business has had a challenging half year in a muted IT investment environment.
Altron invested R342m in capital expenditure in the first half, focused primarily on Netstar, Altron FinTech, and systems and platforms.
“We anticipate ongoing challenges for IT Services in the near term. Our priority remains investing in our Platforms, which deliver significant value for shareholders,” said Kapp.
“We’re focused on executing our strategy, managing capital efficiently, making strategic investments and driving sustainable, profitable growth to enhance long-term shareholder value,” he said.
MackenzieJ@arena.africa
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