Altron, the South African technology group, says that headline earnings per share from continuing operations will be at least 40% or 41 cents higher in the 12 months to end-February.
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Altron, the South African technology group, said on Monday that headline earnings per share from continuing operations will be at least 40% or 41 cents higher in the 12 months to end-February than 103 cents reported for the previous year.
The share price fell 2.37% to R20 but remained more than double the R9.71 it traded at a year ago.
This was after Netstar surpassed 2 million subscribers mark, driving revenue growth and double-digit increases in earnings before interest, tax, depreciation, and amortisation (EBITDA), and operating profit.
In addition, the Platforms segment maintained a strong year-to-date performance, Altron directors said in a trading statement Monday.
“Altron’s focus on customer obsession, disciplined strategy execution, and profit improvement strategies have driven continued positive momentum into the second half,” they said.
Continuing operations earnings per share would be at least 30% higher than the 95 cents reported in the comparative period.
Group HEPS would be more than 100% higher than the 29 cents loss per share reported in the comparative period, and group EPS will be more than 100% higher than the 45 cents loss a share reported in the comparative period.
Altron had a strong year-to-date performance..
Continuing operations, adjusted for the sale of the ATM Business, delivered low single-digit year-to-date revenue growth, with strong double-digit growth in Ebitda and operating profit, demonstrating delivery of improved efficiency and operating leverage across the business.
Performance was negatively impacted by softer trading conditions in the second half, primarily due to pressure in the Australian market, and Netstar's Australian operations were projected to report a loss for the year.
Netstar's South African operations maintained a strong trajectory, with double-digit year-to-date growth in subscribers, supported by growth in both the consumer and enterprise segments.
Altron FinTech saw a strong performance, with double-digit growth in revenue, EBITDA, and operating profit after an expanding customer base within the small and medium-sized enterprise market,.
Altron HealthTech grew year-to-date revenue, with double-digit increases in Ebitda and operating profit, underpinned by growth across the private practice management and corporate segments.
Within the IT Services segment, Altron Digital Business, adjusted for the sale of the ATM Business, maintained flat year-to-date revenue, impacted by the delay of two projects.
Altron Security benefited from previous corrective actions, achieving modest year-to-date growth in Ebitda and operating profit.
Altron Document Solutions was re-integrated into continuing operations, with notable year-to-date growth in both Ebitda and operating profit, alongside stable revenue.
In the Distribution segment, Altron Arrow was targeting to maintain its operating profit margin, but revenue was anticipated to be weaker due to the cyclical global slowdown in electrical component distribution.
In discontinued operations, Altron Nexus was restructured, including a strengthening of the management team. A profit improvement strategy was being implemented.
“Altron is progressing with the active disposal process of Altron Nexus and is in advanced discussions with a potential purchaser,” the group directors said.
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