JSE-listed Altron on Monday achieved double-digit increases in earnings before interest, taxes, depreciation and amortisation (Ebitda) and operating profit during the year ended February 28, 2025.

Ebitda for continuing operations climbed 27% to R1.8-billion, while operating profit increased 50% to R972-million.

“Altron delivered a solid financial performance for the year, with continued execution of its strategy and a focus on higher-margin, quality revenue supporting improved profitability,” said Altron CEO Werner Kapp.

Continuing operations’ headline earnings per share (HEPS) increased 73% to 178c during the year under review from 103c in the prior year, while earnings per share (EPS) increased 64% to 156c, up from 95c last year.

Continuing operations include Netstar, Altron FinTech, Altron HealthTech, Altron Digital Business, Altron Security, Altron Document Solutions, Altron Arrow and excludes Altron Nexus.

On a group level, including discontinued operations, Ebitda increased 69% to R1.7-billion, operating profit increased more than 100% to R817-million and HEPS and EPS both increased more than 100% to 134c and 103c respectively.

Revenue from continuing operations remained flat at R9.6-billion, while overall group revenue declined 4% to R9.9-billion, impacted by the sale of the ATM Business, which was sold effective July 1, 2023, with four months trading included in the comparative results, and reduced revenue from Altron Nexus following its restructuring.

Excluding the ATM Business, revenue grew 3% with strong annuity revenue growth of 10%.

“This year's strong results reflect the disciplined execution of our strategy, despite heightened economic and political uncertainty. Our high annuity revenue base provides a solid foundation, with our Platforms segment remaining a key growth driver, delivering double-digit revenue and profit growth. This consistent performance has strengthened our financial position and enabled us to deliver meaningful value to our shareholders,” Kapp said.

The Platforms segment underpinned the group’s performance, delivering a 12% increase in revenue to R4-billion, a 23% increase in Ebitda to R1.5-billion and a 30% increase in operating profit to R798-million during the year ended February 28.

Netstar achieved Ebitda growth of 17% to R935-million, with a three percentage point expansion in Ebitda margin. Netstar also reported a 15% increase in operating profit to R255-million and revenue growth of 10% to R2.3-billion during the year under review.

Altron FinTech, meanwhile, continued its positive momentum, growing revenue 17% to R1.3-billion, with annuity revenue increasing from 74% to 84%.

The unit’s Ebitda also increased 38% to R457-million and expanded its Ebitda margin by six percentage points to 36%. Operating profit grew 46% to R423-million.

Altron HealthTech increased revenue 6% to R397-million, while its Ebitda increased 15% to R122-million and operating profit increased 18% to R120-million.

The IT Services segment generated revenue of R5.1-billion during the year ended February, declining 6% mostly owing to the sale of the ATM Business. However, the segment’s Ebitda improved 40% to R307-million and operating profit increased to R230-million, up from R131-million in the prior year.

Altron Document Solutions’ revenue increased 1% to R1.4-billion. Ebitda improved to R84-million during the year under review, from a prior-year loss of R74-million, while operating profit improving to R61-million, compared with a loss of R97-million in the prior year, the latter of which included provisions of R95-million.

Meanwhile, Altron Digital Business, while maintaining flat year-to-date revenue of R3.2-billion, posted a 44% decrease in Ebitda to R109-million and a 47% decline in operating profit to R83-million during the year ended February 28, 2025.

Altron Security reported a 12% decrease in revenue to R397-million, while Ebitda increased 13% to R114-million and operating profit increased 19% to R86-million.

Altron Arrow's revenue declined 17% to R669-million and the unit’s Ebitda and operating profit remaining flat at R69-million and R67-million, respectively.

In the discontinued operations, Altron Nexus reported revenue of R343-million, compared with R659-million in the prior year. Ebitda, however, improved to a loss of R149-million from a loss of R421-million, and the operating loss improved to a loss of R148-million from a loss of R433-million.

Subsequent to year-end, the group entered into a sale and purchase agreement with a consortium, which includes members of Altron Nexus' management team, for the sale of the group’s remaining discontinued operation, Altron Nexus. The MBO transaction, as the deal is called, remains subject to the fulfilment of conditions precedent, which are targeted to be fulfilled by June 30.

Under the terms of the MBO transaction, the acquirers of Altron Nexus will assume all company-related debt, excluding any obligations that are specifically excluded. Any potential recoveries from the City of Tshwane legal process, however, will remain with Altron.

Amid the transaction, Altron Nexus has rebranded as Sentiv, a name that has been derived from a blend of “sentient” and “intuitive” to reflect the company’s evolution into a platform-led business that is responsive and aware while empowering its customers with real-time insights, adaptive connectivity and predictive intelligence.

The buyout is led by current MD Louis Du Toit, who will assume the role of CEO, and Reshaad Sha, who will serve as executive chairperson.

During the year under review, Altron invested R708-million in capital expenditure, of which R645-million supported growth initiatives, including R442-million investments into Netstar's capital rental devices and R31-million into Altron FinTech's capital rental devices.

Altron declared a final dividend of 50c for the year ended February 28, a 52% increase on the prior year.