Altron has provided EPS ranges for its H127 results. Group headline EPS (HEPS) is expected to be 21–27% higher y-o-y at 105–110 ZAR cents and HEPS from continuing operations is expected to be 11–17% higher y-o-y at 107–112 ZAR cents. The company is scheduled to release full H127 results on 2 November.

Altron’s pre-close update confirmed that trading in the first five months of FY27 has broadly been in line with management expectations and is expected to continue in a similar vein for the rest of FY27. The Platforms segment is trading ahead of our expectations, offset by weaker performance in IT Services, mainly from Altron Security. We have revised our forecasts to reflect this weighting, with Platforms continuing to generate a growing proportion of operating profit.

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.