JSE-listed Altron on Monday reported a double-digit increase in its interim dividend as the technology company delivered pleasing financial results for the six months to August 31, 2025.

During the half-year under review, operating profit from Altron’s continuing operations increased 15% to R549-million, mostly driven by excellent performance in the Platforms segment, as well as a positive impact from a change in Netstar's depreciation policy.

On a group level, operating profit increased 11% to R516-million during the period ending August 31.

“I am pleased with this period’s strong financial performance in a challenging economic environment. I am 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,” said Altron CEO Werner Kapp.

The group’s interim dividend increased 20% to 48c a share.

During the six months ended August 31, headline earnings per share (HEPS) from continuing operations rose 22% to 96c, while the group’s overall HEPS increased 18% to 87c apiece.

Earnings per share (EPS) from continuing operations increased by 12% to 84c, however, overall group EPS declined by 6% to 66c, impacted by Altron Nexus.

Altron Nexus was classified as a discontinued operation and held for sale before being sold on August 1.

Meanwhile, earnings before interest, taxes, depreciation and amortisation (Ebitda) from continuing operations edged up 4% to R938-million, while group Ebitda climbed 2% to R905-million.

Revenue from continuing operations declined by 1% to R4.8-billion, Kapp noted, pointing out that this reflected the challenging environment in the Information Technology (IT) Services and Distribution businesses; however, this was offset by robust growth in the Platforms segment.

Group revenue, including discontinued operations, fell by 4% to R4.9-billion, owing to a lower contribution from Altron Nexus.

SEGMENTAL PERFORMANCE

The Platforms segment grew its revenue by 12% to R2.2-billion, with Ebitda growing 14% to R881-million and operating profit increasing 32% to R547-million during the six months ended August 31.

Within the Platforms segment, Netstar’s revenue increased 8% to R1.2-billion, while Ebitda increased 10% to R540-million and operating profit increased 54% to R225-million. Netstar’s subscribers expanded 11% to 2.1-million.

Altron FinTech also continued its strong performance, growing revenue 24% to R750-million, Ebitda by 18% to R274-million and operating profit by 20% to R257-million.

During the six months under review, Altron HealthTech revenue remained flat at R201-million, while Ebitda increased by 21% to R67-million and operating profit grew by 20% to R65-million.

Revenue from the IT Services segment decreased 7% to R2.4-billion. Ebitda decreased by 41% to R92-million, while operating profit decreased 49% to R61-million.

Within this segment, Altron Digital Business faced a challenging half-year owing to muted IT spending by major South African enterprises.

Revenue declined 10% to R1.5-billion, Ebitda decreased to a loss of R32-million from a profit of R47-million, and operating profit declined from R34-million to an operating loss of R42-million.

However, Altron Digital Business has implemented a profit improvement strategy aimed at removing R150-million from its cost base, the full impact of which will be felt in the 2027 financial year.

Revenue from Altron Security revenue increased 2% to R252-million, with good growth in software and managed services increasing annuity revenues.

Its operating profit increased 6% to R70-million, while Ebitda decreased 2% to R78-million.

Altron Document Solutions increased its Ebitda 53% to R46-million and operating profit 65% to R33-million, despite a revenue decrease of 5% to R697-million.

“Altron Document Solutions has adapted well to changing market dynamics, developing its eco-range and digital solutions, leading to strong results as customers seek more cost-effective and secure ways to digitise, automate and manage business information,” the company outlined during the release of its financial results on Monday.

Within the distribution segment, Altron Arrow was impacted by the global slowdown in the electronic component distribution sector, with revenue falling 23% to R288-million, operating profit falling 49% to R18-million and Ebitda decreasing 46% to R19-million.

Altron Nexus, which was sold during the period, contributed revenue of R89-million, and experienced an Ebitda and operating loss of R32-million for the period under review.

Meanwhile, Altron invested R370-million in capital expenditure during the six months to August 31, of which R342-million was directed to growth initiatives, including investments in capital rental devices in Netstar and Altron FinTech, as well as new ventures such as the Altron AI Factory and the expansion of Altron HealthTech’s oncology solution to include a patient app.

“We anticipate ongoing challenges for IT Services in the near term. Our priority remains investing in our Platforms, which deliver significant value for shareholders.

“We are focused on executing our strategy, managing capital efficiently, making strategic investments and driving sustainable, profitable growth to enhance long-term shareholder value,” Kapp concluded.