Altron — Platform businesses drive FY25 upside
09/06/2025
Altron reported EBITDA and operating profit before capital items and headline EPS well ahead of our forecasts for FY25. In the Platforms division, the strength of the FinTech and HealthTech businesses more than offset a weaker H2 for Netstar. The IT Services division beat our operating profit forecast even though Altron Digital Business (ADB) had a disappointing year. Management maintains its medium-term operating margin targets. We have revised our forecasts to reflect the H225 performance, with Platforms remaining at or above the targets for FY26/27. Due to the difficult trading environment for ADB, we forecast a slower margin progression for the IT Services division, resulting in a small downgrade to our FY26 HEPS from continuing operations before a return to growth of 19% in FY27. The imminent management buyout of Nexus removes the last discontinued business, leaving management to focus on the core business.
Altron — Strong results from continuing operations
14/05/2025
Following on from its 24 February trading update for FY25, Altron has provided more specific guidance for its FY25 results. Headline and reported EPS from continuing operations as well as group headline EPS are well ahead of our forecasts. Reported group EPS is lower than we forecast, we estimate due to higher than expected losses from discontinued operations (now only the Nexus business). We maintain our forecasts pending full results on 26 May.
Altron – executive interview
05/03/2025
In this interview, Johan Gellatly, managing director of Altron FinTech, provides an overview of the business and discusses the key trends in the South African payments market, including the South African Reserve Bank’s plans for the national payments system. With the majority of the division’s revenue generated from the microlending market, Johan describes how Altron FinTech serves this market and how he expects the market to evolve. Reflecting on the shift from upfront purchase to a rental model for payment hardware, he explains how this is enabling the company to provide additional services to its customers. Finally, he discusses his views on the main growth drivers for the business, with support for financial and digital inclusion, a key goal for the company. Altron FinTech is a subsidiary of Altron (JSE: AEL), a provider of platforms and IT services predominantly to the South African market. For over 30 years, Altron FinTech has simplified payment, credit management and payment device hardware solutions for businesses in South Africa. It is a high-margin business, reporting an operating margin of 26% in FY24, and generates a high level of annuity revenues (74%). In FY24, the division generated 11% of group revenue and 36% of group operating profit.