JSE-listed Altron on Wednesday said that it expects its group headline earnings per share (HEPS) and group earnings per share (EPS) to increase by at least 20% for the six months ended August 31.

Continuing HEPS and continuing EPS will be at least 20% higher than the comparative six months in 2023.

This follows the successful implementation of the profit improvement strategies and target operating models in Altron's continuing operations and Altron Document Solutions, which has resulted in an improved performance in the second half of the 2024 financial year, Altron noted in a statement issued to shareholders.

“This positive momentum has continued into the 2025 financial year, leading to a stronger year-to-date performance in comparison to the comparative period, which was negatively impacted by provisions and impairments raised.”

Within the group’s continuing operations, the Own Platforms segment delivered a strong year-to-date performance with revenue growth from Altron FinTech, Altron HealthTech and Netstar, along with notable growth in earnings before interest, taxes, depreciation and amortisation (Ebitda) and operating profit.

Further, within the Information Technology (IT) Services segment, Altron Digital Business has achieved revenue growth in line with the market, as the early benefits of the new sales operating model start to take effect.

However, Ebitda and operating profit are expected to be softer, owing to nonrecurring project expenses relating to historic contracts which have now been closed and some project delays.

Altron Security's performance benefited from corrective actions taken in the preceding six-month period, with modest growth in Ebitda and operating profit expected.

While Altron Arrow aims to maintain its operating profit margin, its revenue is also expected to be softer owing to the cyclical global slowdown in electrical component distribution.

Meanwhile, in the discontinued operations, both Altron Document Solutions and Altron Nexus were restructured and the management teams strengthened in the comparative period. Profit improvement strategies were implemented to improve cash flow generation and return these businesses to profitability and active disposal processes were run for both businesses.

“A strategic evaluation of all options for Altron Document Solutions was conducted, including an assessment of the offers received. These offers were below the Altron board's assessment of fundamental value and carried execution risk,” the company continued, noting that the board subsequently concluded that retaining Altron Document Solutions within the group was the most effective option to maximise value for shareholders.

“Despite historically being held-for-sale, Altron Document Solutions remains an attractive business. It is supported by a robust customer base and long-term contracts that generate sizeable annuity revenue, with strong support from its partner Xerox.”

Consequently, Altron Document Solutions will no longer be classified as held-for-sale and will be included in continuing operations within the IT Services segment in the six months under review.

The successful execution of Altron Document Solutions' profit improvement strategy has continued, resulting in year-to-date growth in revenue, Ebitda and operating profit.

Altron expects to publish its results for the six months to August 31 on November 4.