Wrap Text
Voluntary Operational Update and Appointment of Group Company Secretary
ALTRON LIMITED
(Registration number 1947/024583/06)
(Incorporated in the Republic of South Africa)
Share Code: AEL ISIN: ZAE000191342
(“Altron” or “Group” or “Company”)
VOLUNTARY OPERATIONAL UPDATE AND APPOINTMENT OF GROUP COMPANY SECRETARY
The Company hereby provides a voluntary operational update for the six months ending 31 August 2026
("HY27").
The commentary below is based on trading and operational performance for the five months ended 31 July
2026 compared to the five months ended 31 July 2025. Commentary relates to continuing operations(1).
Overview and operating environment:
Trading and operational performance to 31 July 2026 has been broadly in line with management expectations.
The Group expects trading for HY27 to follow a similar trend.
Operational momentum evidenced in the prior year continued into HY27. Our Platforms segment(2), Altron’s
growth engine, delivered high-single-digit revenue growth. IT Services delivered modest revenue growth, a
notable improvement on the prior comparative period when revenue declined, resulting in overall growth in
revenue from continuing operations in the low-single digits.
This result marks a meaningful inflection point in the Group's growth trajectory and the strategic portfolio
transformation undertaken over the past three years: Altron's evolution into a multi-platform business
positioned for sustainable growth in South Africa's digital economy and the successful repositioning of the IT
Services segment.
The Group's focus and discipline in deploying capital into higher-margin, annuity-based growth opportunities
continued in HY27, with the contribution from the Platforms segment increasing further to approximately 45%
of Group revenue, while accounting for approximately 95% of operating profit.
This mix is expected to be sustained through the twelve months ending 28 February 2027 (“FY27”), reflecting
the ongoing shift towards a higher-quality earnings profile. In FY27 we expect a similar pattern to twelve months
ending 28 February 2026 (“FY26”), being a stronger performance in the second half of FY27.
Group EBITDA and operating profit increased by low-to-mid-teen percentages, underpinned by continued
operational discipline and operating leverage, enabling the conversion of revenue growth into stronger earnings
growth.
Importantly, this profit growth has been achieved while simultaneously absorbing deliberate growth
investments in Netstar (including platform modernisation and customer acquisition initiatives) and Altron
FinTech's expansion in the SME market.
Operating margins across the Group remain resilient, supported by the structural shift toward annuity-revenue
businesses and disciplined cost management. The Group's operating profit margin(3) has expanded on a year-
to-date basis, reflecting both the operating leverage inherent in our Platforms portfolio as scale increases and
improved profitability within the IT Services segment.
Capital structure and cash generation
The Group continues to deploy capital strategically towards higher-margin, annuity-based growth
opportunities, including ongoing investments in Netstar's platform modernisation and the expansion of Altron
FinTech. These investments support the Group's Transformative Growth strategy and long-term value creation
objectives.
Altron remains committed to maintaining a healthy liquidity position, underpinned by strong cash conversion
and disciplined capital allocation. The structural shift towards annuity-based revenue, 68% of total Group
revenue, continues to enhance the quality of earnings and support higher levels of cash flow generation. As a
result, the Group maintained a positive net cash position and ungeared balance sheet after dividend payments
of approximately R750 million in June 2026, including a special dividend.
Segmental Performance
Platforms segment(4)
- Altron FinTech has maintained the strong momentum established in FY26, with revenue and EBITDA
growing mid-to-high teens. Performance was underpinned by continued customer acquisition,
healthy transaction volume growth, lower-than-expected customer churn and ongoing expansion of
its payments and collections ecosystem. Strong traction in the POS rental offering continues to
support platform scale and the growth of recurring revenue streams. Annuity revenue exceeded 85%
of total revenue, supporting a high-quality earnings profile and demonstrating the platform's
scalability.
- Netstar's EBITDA increased in the mid-teens, in line with expectations, supported primarily by the
continued strong performance of the South African business.
- Having successfully scaled its subscriber base to more than two million over the past three
years, FY27 is a year of targeted investment focused on sales execution, platform
modernisation, customer acquisition and strengthening long-term competitiveness, while
maintaining disciplined capital allocation and operational efficiency.
- Under Warren Mande's leadership, Netstar is building on its strong market position through
enhanced sales execution and disciplined, data-driven capital allocation towards the highest-
return commercial opportunities and sales channels, supporting sustainable long-term value
creation.
- Altron HealthTech continues to deliver solid profitability and cash generation, with mid-teen EBITDA
growth. While revenue growth is improving, management remains focused on accelerating
momentum through enhanced commercial execution, particularly in the corporate market and data
monetisation initiatives.
IT Services segment
- Altron Digital Business has made a strong improvement in performance following the successful
execution of its profit improvement strategy undertaken in the prior year. The momentum achieved in
the second half of FY26 continued into the current period, with the business delivering an operating
profit and positive EBITDA, compared to an operating loss and negative EBITDA a year ago.
Performance was supported by improved order intake, contract renewals and focused cost
management. The business is well positioned to benefit from any upturn in IT services spending.
- Altron Security’s EBITDA and operating profit were impacted by software revenue recognition timing
and IT Services segment pressures. The platform portion of the business (identity and digital signing)
performed well, while IT services remain under pressure due to the constrained enterprise spending
environment. The Group continues to pursue corrective actions to improve profitability in the IT
Services component.
- Altron Document Solutions continued its strong trajectory, with EBITDA growth in the low-twenties,
reflecting higher-margin service mix and disciplined cost management. The business continues to
deliver consistent profitability and cash generation.
Distribution
- Our distribution business, Arrow, while a relatively small contributor to the Group, has had a strong
start to the year and entered FY27 with positive momentum. Having moved through the bottom of the
cycle, the order book is growing, and the business has recorded a positive book-to-bill ratio for the first
time in two years, supporting an encouraging outlook.
Strategic highlights
Following a comprehensive reassessment of B-BBEE ownership usage methodology, the Group has been re-
rated with a Black Owned status of 63% (previously 38%) and Black Women Owned status of 35% (previously
21%). The enhanced ownership credentials flow through to the Group’s relevant South African operating
entities, taking them above key ownership thresholds and strengthening their competitiveness in government
and enterprise procurement. The improved ownership profile also provides greater flexibility in achieving
targeted B-BBEE outcomes, enabling transformation investment to be increasingly directed towards
initiatives that deliver meaningful and sustainable impact.
Appointment of Group Company Secretary
In terms of the JSE Listings Requirements, shareholders are advised that Ms Lauren Wilson is appointed as
Group Company Secretary with effect from 31 August 2026.
Ms Wilson is the Company’s Chief Legal Officer, a position she has held since March 2025. Ms Wilson brings
almost two decades of legal expertise and strategic leadership to the position. Additional information is
available at www.altron.com/leadership.
The Board is satisfied that Ms Wilson has the requisite competence, qualifications and experience to fulfill the
role in accordance with the JSE Listings Requirements.
Pre-close investor call
Altron will host a virtual pre-close investor call for the six months ending 31 August 2026, ahead of the
commencement of the closed period. The pre-close investor call will take place today, Monday 31 August
2026, at 3:00pm SA time (SAST). Shareholders and analysts are invited to register via the following link:
https://www.corpcam.com/Altron31082026
Shareholders are advised that the information set out above, and the financial information on which this
operational update is based, have not been audited, reviewed or otherwise reported on by the Company's
external auditors.
Notes:
(1) Commentary relates to continuing operations unless specified otherwise. Continuing operations include: Altron FinTech, Netstar, Altron
HealthTech, Altron Security, Altron Digital Business, Altron Document Solutions, and Altron Arrow.
The six months ended 31 August 2025 ("HY26") includes the impact of Nexus for 5 months, in discontinued operations. Nexus was
disposed of effective 1 August 2025 (HY26) and thus has no impact in HY27.
(2) For purposes of this operational update, Altron Security remains fully included within the IT Services segment, consistent with previously
reported segmental disclosure. As communicated at the FY26 results presentation and the Capital Markets Day held in June 2026, the
Group will separately disclose the Platform and IT Services components of Altron Security when reporting its HY27 results, with HY26
comparative information presented on a consistent basis to facilitate period-on-period comparability.
(3) The reported year-on-year operating profit margin performance is comparable, as the five-year useful life applied to Netstar device
depreciation was in effect throughout both HY26 and HY27.
(4) For purposes of this operational update, Altron Security remains fully included within the IT Services segment, consistent with previously
reported segmental disclosure. As communicated at the FY26 results presentation and the Capital Markets Day held in June 2026, the
Group will separately disclose the Platform and IT Services components of Altron Security when reporting its HY27 results, with HY26
comparative information presented on a consistent basis to facilitate period-on-period comparability.
Johannesburg
31 August 2026
JSE Equity Sponsor:
Investec Bank Limited
Investor Relations contact:
Phillipe Welthagen
+27 84 512 5393
Phillipe.welthagen@altron.com
Date: 31/08/2026 05:05:00
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