- Altron Limited reports impressive annual results for 2023, with a 19% increase in revenue and a 2% improvement in EBITDA.
- The company announces changes to its board of directors, appointing new managing directors for Netstar and Altron Systems Integration.
- Altron remains optimistic about the future, focusing on revenue growth, operating leverage, and investment in growth businesses to drive profitability.
Altron Group, the Johannesburg-based technology company, has announced its annual results for the year ending on 28th February 2023. The company’s revenue for the year stood at R9.5 billion, up by 19% from the previous year. All segments of the company contributed to the growth in revenue.
Continued Growth and Financial Highlights:
Altron reported a remarkable 19% increase in revenue, reaching R9.5 billion. This growth was driven by all segments of the company experiencing revenue expansion.
Although impacted by certain provisions, Altron achieved a 2% improvement in earnings before interest, taxation, depreciation, amortisation, capital items, and equity accounted profits (EBITDA), amounting to R1.2 billion. Adjusting for these provisions, the core EBITDA expanded by 11% to R1.3 billion.
Earnings per share (EPS) showed substantial growth of 80%, reaching 36 cents. However, headline earnings per share (HEPS) decreased by 8% to 47 cents. Adjusting for the provisions, the core performance of Altron in FY2023 demonstrated an 11% EBITDA expansion, a 79% increase in EPS to 77 cents, and a 19% growth in HEPS to 89 cents.
Group Performance and Key Business Highlights:
On a group level, Altron achieved a 14% increase in revenue, amounting to R10.9 billion. The company’s diversified earnings base and high annuity business model contributed to this robust growth.
EBITDA for the group declined by 4% to R1.1 billion due to the impact of provisions, including Altron Document Solutions (ADS) raising a provision for inventory held and an impairment on an outstanding receivable. EPS, however, experienced a substantial increase of 96% to (1) cent, while HEPS decreased by 22% to 29 cents.
During the fiscal year, Altron achieved several key business highlights, including the integration of Lawtrust for a full 12 months, receiving competition approval for the disposal of its banking business in Altron Managed Solutions to NCR, and making progress in exiting non-core assets in Rest of Africa.
Changes to the Board:
Altron announced changes to its board of directors, with Grant Fraser appointed as the Managing Director of Netstar and Collin Govender appointed as the Managing Director of Altron Systems Integration. These appointments are part of the company’s strategy to drive profit improvement in each respective business.
Positive Outlook and CEO’s Statement:
Commenting on the financial results, Altron Group CEO Werner Kapp expressed satisfaction with the company’s resilience in a challenging economic environment. He highlighted the positive results of Altron’s profit improvement strategy, particularly in Netstar and Altron Systems Integration, the company’s two largest businesses. Kapp emphasized the focus on revenue growth, operating leverage, and investment in growth businesses, underscoring the importance of customer-centric strategies and cybersecurity measures.
Kapp concluded by expressing optimism about the future, stating, “…Despite continuing tough trading conditions, I am excited by the opportunity before us.”
Altron Limited’s annual results for the fiscal year 2023 demonstrate strong revenue growth and progress in strategic initiatives. The company’s ability to navigate challenging economic conditions, coupled with its focus on core performance and divestment of non-core assets, positions Altron well for sustained growth. With a clear growth strategy and ongoing commitment to cybersecurity, Altron is poised to capitalize on future opportunities and drive further success in the technology industry.