Wrap Text
Voluntary Operational Update
ALTRON LIMITED
(Registration number 1947/024583/06)
(Incorporated in the Republic of South Africa)
Share Code: AEL ISIN: ZAE000191342
("Altron" or "the Company" or "Group")
VOLUNTARY OPERATIONAL UPDATE
Shareholders are referred to Altron's trading statement released on 12 February 2026, issued in accordance
with paragraph 6.26 of the JSE Listings Requirements, in which the Company advised that headline
earnings per share ("HEPS") and earnings per share ("EPS") from continuing operations(1) for the financial
year ending 28 February 2026 ("FY2026") are expected to exceed the prior comparative period by more
than 30%.
The Company hereby provides a voluntary operational update for FY2026.
VOLUNTARY OPERATIONAL UPDATE(1)
Overview and operating environment
Operational momentum evidenced in the first half of the financial year ("H1 FY2026") provided a solid
foundation for a stronger performance in the second half of the year ("H2 FY2026") to date(2) and this trend
is expected to continue for the full year, FY2026.
Continuing operations delivered low double-digit EBITDA growth year-to-date, and operating profit growth
greater than 20%. Excluding the change in Netstar's depreciation policy(3) operating profit increased in the
low-to-mid-teens. The Group's performance is attributable to disciplined focus on execution of its strategy
across all businesses and reflects the benefit of a robust and diversified portfolio, despite varying operating
conditions.
Deliberate focus on deployment of capital into higher-margin, annuity-revenue growth opportunities
continued in H2 FY2026, with further improvement in operating leverage. Year-to-date, Altron's Platforms
segment has contributed approximately 45% to revenue, and approximately 90% to both EBITDA and
operating profit.
Robust double-digit revenue growth in the Platforms segment was offset by a decrease in revenue in the
IT Services segment. The constrained operating environment for IT Services persisted in H2 FY2026 and
is in line with market trends observed in South Africa and globally.
Capital structure and cash generation
The Group is committed to maintaining a healthy liquidity position, with a continued emphasis on cash
conversion and disciplined capital allocation. Operating cash flows continued to strengthen in H2 FY2026,
relative to H1 FY2026. This performance is underpinned by the continued shift in revenue mix toward
annuity-based income, which exceeded 65% of total revenue year-to-date for FY2026, and is a structural
driver of higher cash flow generation.
Segmental Performance
Platforms segment:
- Netstar delivered a strong performance underpinned by solid growth in South Africa and early signs of
progress in Australia.
- The South African business continues to perform well, with sustained low double-digit growth in
revenue and strengthening operational execution, delivering high-teen EBITDA growth year-to-
date.
- Australia's recovery has been slower than initially anticipated due to once-off items affecting
operating profit; however, key performance indicators including subscriber growth, cash flow and
sales activity have shown improvement.
- Netstar has delivered mid-to-high teen EBITDA growth year-to-date. Excluding the change in
Netstar's depreciation policy(4), operating profit increased in the high teens, in line with EBITDA
growth.
- Altron FinTech delivered high teen revenue growth driven by continued success in onboarding SME
customers onto its payments and collections platform and higher volumes in payments and collections.
Annuity revenue year-to-date exceeded 80%. With the focus on higher-margin products and services,
and as the business scales, operating margins continued to improve, delivering EBITDA and operating
profit growth, both in the high-twenties percent range.
- Altron HealthTech's year-to-date EBITDA growth, in the low-twenties percent range, and operating profit
growth in the high teens, are tracking in line with H1 FY2026 performance.
IT Services segment:
- Altron Digital Business continues to be impacted by the challenging IT services environment. In
response, as highlighted in H1 FY2026, Altron implemented a comprehensive profit-improvement
strategy and finalised its restructuring in December 2025. Two consecutive months of operating
profitability in December 2025 and January 2026 reflect a marked improvement in the IT Services
segment's performance and provide clear evidence that the cost-reduction measures are gaining
traction. The business is now well positioned to benefit from any upturn in IT services spend.
- Altron Security continued to see changes in sales mix, delivering double-digit revenue growth, with
operating profit growth broadly in line with H1 FY2026 performance.
- Altron Document Solutions profit improvement strategy continues to deliver positive results. The focus
on higher-margin services led to more than 30% year-to-date EBITDA and operating profit
improvement.
Pre-close investor call
Altron will host a virtual pre-close investor call for the year ending 28 February 2026, ahead of the
commencement of the closed period. The pre-close investor call will take place today, Tuesday 24 February
2026, at 2:00pm CAT. Shareholders and analysts are invited to register via the following link:
https://www.corpcam.com/Altron24022026.
FY2026 results and Altron capital markets day
The FY2026 year-end will mark the completion of Altron's Accelerated Growth phase of its strategy. Having
delivered three years of accelerated growth, which strengthened margins, streamlined the portfolio and
embedded operational discipline, Altron is now positioned to enter its next phase of Transformative Growth.
Further details to be communicated at the presentation of Altron's FY2026 results, expected to be released
on SENS on or about 25 May 2026, and Altron expects to host a capital markets day in June 2026.
The financial information on which this operational update is based is the responsibility of the directors of
Altron and has not been reviewed or reported on by the Group's independent external auditor.
___
Notes:
1. Continuing operations include: Netstar, Altron FinTech, Altron HealthTech, Altron Digital Business,
Altron Security, Altron Document Solutions, and Altron Arrow. Commentary relates to continuing
operations unless specified otherwise. Discontinued operations include Altron Nexus which was sold
on 1 August 2025.
2. Altron's year-to-date performance trends reflects the eleven months to 31 January 2026 ("year-to-date")
compared to the comparative prior period, the eleven months to 31 January 2025.
3. Netstar revised its depreciation policy at the start of FY2026, increasing the depreciation period for
eligible capital rental devices from three to an average of five years, based on an independently
calculated useful life assessment. This adjustment better aligns the depreciation pattern of these assets
with their economic lifespan and industry norms. The change in estimate is applied prospectively from
the start of FY2026.
4. Netstar revised its depreciation policy at the start of FY2026, increasing the depreciation period for
eligible capital rental devices from three to an average of five years, based on an independently
calculated useful life assessment. This adjustment better aligns the depreciation pattern of these assets
with their economic lifespan and industry norms. The change in estimate is applied prospectively from
the start of FY2026.
Johannesburg
24 February 2026
JSE Equity Sponsor
Investec Bank Limited
Date: 24-02-2026 07:05:00
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