One of South Africa’s best-performing companies bounces back

Altron’s earnings are set to skyrocket in its 2025 financial year as the company recovers from its negative earnings the previous year.

Altron released a trading update for its financial year ending 28 February 2025, which showed strong improvements over the previous year.

Altron is one of South Africa’s largest technology companies and was one of the JSE’s best-performing stocks in 2024, with 117% share price growth.

The company experienced significant profitability improvements from its continuing operations in 2024.

The group reported a loss from its total operations in its February 2024 year-end results. However, strong profits were reported in its continuing operations.

By its interim period, the group reported profitability from its total operations, significantly improving from the loss it reported in 2023.

Now, its results for the year through February 2025 are expected to be considerably stronger.

The company expects its headline earnings per share (HEPS) for continuing operations to be at least 40% higher than the previous year’s.

Earnings per share (EPS) from continuing operations are expected to be at least 30% higher.

Group HEPS and EPS are expected to improve by more than 100%, recovering from the negative earnings in the prior period.

The company said its revenue from continuing operations showed low single-digit growth, but its EBITDA and operating profit experienced strong double-digit growth due to improved efficiency.

The company’s segments are expected to show a mixed performance in Altron’s financial year.

Altron’s Platforms Segment, which comprises Netstar, Altron FinTech and Altron HealthTech, performed well.

Netstar surpassed 2 million subscribers, with revenue and profit growth, though its Australian operations are underperforming.

Altron FinTech and Altron HealthTech both achieved double-digit growth in revenue, EBITDA, and operating profit.

The IT Services Segment performed modestly well.

Altron Digital Business saw flat revenue due to delayed projects, leading to weaker-than-expected EBITDA and profit.

Altron Security showed modest EBITDA and profit growth despite revenue softness, while Altron Document Solutions successfully reintegrated and improved its profitability.

The company’s Distribution Segment, Altron Arrow, maintained operating profit margins but faced revenue pressure due to a global slowdown in electrical component distribution.

In terms of discontinued operations, the company said Altron Nexus is undergoing restructuring and is still generating losses, though showing improvement. 

Altron said it is in advanced discussions for this business’ sale.