Altron head office. (Source: Altron)
JSE-listed Altron’s stock was up 8.4% by lunchtime today, after it said headline earnings per share (HEPS) would gain by at least 30% for its full 2026 year.
The company, which marked its 60th birthday last April, notes in a trading update to shareholders that these figures are based on continuing operations. These include Netstar, Altron FinTech, Altron HealthTech, Altron Digital Business, Altron Security, Altron Document Solutions and Altron Arrow. The company has excluded Altron Nexus for its calculations.
Altron says that HEPS – a key measure of profitability that stripes out non-core items – is expected to land at no less than 231c a share when it reports its results for the year to February.
Earnings per share, which includes aspects such as the sale of a property, for example, as a general guide, are expected to rise at the same rate as HEPS to at least 203c a share.
Altron’s shares are up 60% over the past five years.
Overall, group operations will see HEPS gain at least 50% to 201c a share, with EPS growing to 155c a share, also up a minimum 50%.
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Its results, which will be published on 25 May with a pre-close operational update set for 24 February, follow a 15% increase in operating profit for the interim period to August.
When reporting those figures, it noted that a tough trading environment in IT services led to a 1% decline in group revenue to R4.8 billion. Despite the decline, the company’s focus on higher margin annuity revenue streams resulted in further improvements in profitability, it said.
CEO Werner Kapp, appointed with effect from October 2022, noted he was “pleased with this period’s strong financial performance in a challenging economic environment”.
Kapp added that he was “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.”
Altron’s current strategy reflects a pivot from restructuring and divesting from non-core assets, to focusing on growth, with a customer-centric approach. It is scaling its core businesses, engaging in digital partnerships and enhancing services.
Stock in the company is up just shy of 60% over five years.
The company was founded in 1965 by Dr Bill Venter and subsequently run by his sons – Robbie and Craig Venter − as what was then Altron and Altech until the two merged in the biggest deal it had ever concluded.
Mteto Nyati, currently Eskom chairman, ran the company until handing the reins to Kapp. Robbie Venter died in 2024.
