Altron’s recent Capital Markets Day outlined how its platform businesses are entering a new transformative phase of growth. With exposure to mobility, financial and identity services, it is in a strong position to support the growth of South Africa’s digital economy. Multiple growth drivers in each business combined with the use of AI to improve efficiency and develop new products provide the foundations for the company to grow profitably in the medium term. Capital allocation primarily targets organic growth with opportunistic bolt-on acquisitions possible, and South Africa remains the main area of focus.

Altron reported strong growth in earnings in FY26 despite only 1% revenue growth, as the more profitable Platform businesses continued to perform well and Altron Digital Business (ADB) and Altron Document Solutions (ADS) achieved impressive improvements in profitability. In addition to a final dividend of ZAR0.72, the company announced a special dividend of ZAR1.20. Future investment is focused on the Platforms division as the group enters the third phase of growth since management launched its growth strategy in 2023. We have revised up our FY27 forecasts, with continuing headline EPS (HEPS) upgraded by 9%.

Following on from its trading updates on 12 February and 24 February, Altron has provided an update confirming the EPS ranges expected for FY26. For headline EPS (HEPS) and reported EPS on a group and continuing operations basis, the company expects to report results slightly ahead of our estimates. We maintain our forecasts pending full FY26 results on 25 May.