Altron Limited Issues Trading Statement: Forecasts Financial Results Amidst Operational Updates

Altron Limited has released a trading statement, shedding light on its anticipated financial performance for the twelve months ended February 29, 2024. The statement comes as the company navigates through various operational updates and strategic shifts.

Financial Outlook

Altron Limited anticipates a significant variance in its financial results for the Reporting Period compared to the previous corresponding period, largely attributed to non-cash adjustments made earlier in the fiscal year 2024. Key financial forecasts include:

Operational Highlights

Despite financial adjustments, Altron Limited’s operational arms are showcasing resilience and growth:

• Continuing operations are demonstrating a robust year-to-date performance, marked by revenue growth, double-digit increases in EBITDA and Operating Profit.
• The Own Platforms segment, encompassing Altron FinTech, Altron HealthTech, and Netstar, is experiencing notable revenue growth, coupled with significant gains in EBITDA and Operating Profit.
• Digital Transformation initiatives within Altron Karabina and Altron Systems Integration are yielding enhanced operational efficiencies and sturdy performance.
• Managed Services, represented primarily by Altron Managed Solutions, are delivering slightly stronger performance in the latter half of the fiscal year.
• Altron Arrow is surpassing expectations, boasting reduced operating costs and streamlined business processes.

Discontinued Operations

Amidst strategic streamlining efforts, Altron Limited addresses the performance of discontinued operations:

• Altron Nexus and Altron Document Solutions have reported adverse impacts on the Group’s financial performance, with both anticipated to register EBITDA and operating losses for the Reporting Period.
• Nevertheless, profit improvement strategies have been deployed, particularly within Altron Document Solutions, leading to stronger trading performance in the second half of the fiscal year.

Capital Structure and Working Capital

Altron Limited remains focused on optimizing its capital structure and working capital:

• Working capital optimization is underway, with inventory levels normalized and accounts receivables well managed.
• The company emphasizes revenue growth and operating leverage to enhance profitability, leveraging its strong balance sheet and cash-generating capabilities.

Looking Ahead

The financial results for the Reporting Period are slated for release on the Stock Exchange News Service (SENS) on May 20, 2024. Altron Limited underscores its commitment to navigating challenges, driving growth, and delivering long-term value to its shareholders amidst a dynamic business landscape.