Altron profits jump despite ‘challenging environment’

JSE-listed technology group Altron has reported a 71% improvement in interim operating profit from continuing operations to R173-million.

This was on the back of a 2% increase in revenue in the first half of the financial year of R3.5-billion. Headline earnings per share rose by 238% to 11c, while operating free cash flow of R81-million was up by 742%.

Cash generated from operations for the six-month period to 31 August 2021 was up 79% to R527-million.

“During the first half of the year, our business delivered a very resilient performance in the face of a challenging operating environment, demonstrating the benefits of our diverse and high-quality portfolio of businesses,” said CEO Mteto Nyati in a statement.

Netstar was one of the stronger performers in the period, growing revenue by 9%, supported a strong performance in Australia. Altron Systems Integration, however, fell short of expectations, with revenue declining by R186-million to R863-million.

Altron Document Solutions and Altron Arrow remain held for sale, with the management teams of the two companies now in discussions with prospective buyers. “We are positive about the disposal of these operations in the short to medium term,” Nyati said.

The board declared a gross interim dividend of 7c/share (5.6c after withholding tax). That’s down from 33c/share a year ago, although that pay-out was partly based on profit from Bytes UK, a company it has since unbundled to shareholders.  – © 2021 NewsCentral Media