Altron lifts interim dividend 15% as profit grows

Altron, a technology group listed on the JSE, reported a 13% increase in operating profit for the six months ending August 31, driven by growth in its platform businesses and a recovery in its IT services division. Revenue grew by 5% to R5.06 billion, while EBITDA rose 16% to R1.09 billion compared to the same period last year. The interim dividend was increased by 15% to 55 cents per share.

The company's platforms division, which accounts for over 95% of operating profit, saw an 8% revenue growth. Its annuity revenue increased 11% to R2.2 billion, representing 92% of segment revenue. Altron's IT services division, which recorded an 8% revenue growth to R1.6 billion, returned to profitability with EBITDA of R32 million.

Altron HealthTech, a subsidiary, saw 2% revenue growth to R205 million, with EBITDA increasing 13% to R76 million. In IT services, Altron Digital Business also showed improvement, increasing revenue 8% to R1.6 billion and reporting EBITDA of R32 million. However, Altron Security, one of its divisions, experienced an 18% decline in revenue to R207 million and a 53% drop in EBITDA to R37 million, attributed to the timing of software revenue recognition.

Altron Document Solutions and Altron Arrow both returned to growth, with the former increasing revenue 4% to R722 million and the latter rising 35% to R388 million. The group invested R447 million in capital expenditure during the period, primarily allocated to growth projects. Despite paying R755 million in dividends in June, Altron ended the reporting period with net cash of over R800 million.