Last close As at 05/08/2026
ZAR27.90
▲ −0.20 (−0.71%)
Market capitalisation
ZAR11,853m
Research: TMT
Altron has provided an H125 trading update pointing to a more than doubling of headline EPS from continuing operations and an even larger increase in reported EPS. Having restated comparatives to reflect the move of Altron Document Solutions back to continuing operations, the improving performance of the remaining discontinued operation has become clearer, showing significantly reduced losses year-on-year. We maintain our forecasts pending the H125 results on 4 November.
Altron |
Strong earnings growth in H125 |
H125 trading update |
Software and comp services |
14 October 2024 |
Share price performance
Business description
Analyst
Altron is a research client of Edison Investment Research Limited |
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Altron has provided an H125 trading update pointing to a more than doubling of headline EPS from continuing operations and an even larger increase in reported EPS. Having restated comparatives to reflect the move of Altron Document Solutions back to continuing operations, the improving performance of the remaining discontinued operation has become clearer, showing significantly reduced losses year-on-year. We maintain our forecasts pending the H125 results on 4 November.
Year end |
Revenue* (ZARm) |
PBT** |
Diluted EPS** (ZAR) |
HEPS*** (ZAR) |
DPS |
P/E |
Yield |
02/23 |
8,445 |
482 |
0.88 |
0.85 |
0.35 |
20.4 |
1.9 |
02/24 |
8,250 |
634 |
1.15 |
1.16 |
0.58 |
15.7 |
3.2 |
02/25e |
8,404 |
725 |
1.31 |
1.29 |
0.63 |
13.8 |
3.5 |
02/26e |
9,076 |
871 |
1.57 |
1.59 |
0.77 |
11.4 |
4.3 |
Note: *Continuing operations. **PBT and EPS are normalised, excluding amortisation of acquired intangibles and exceptional items, and are for continuing operations. ***Basic continuing headline EPS.
In advance of its results for the six months to 31 August scheduled for 4 November, Altron has published an update on trading in H125 with a narrowed EPS range. Since the company announced in July that it was bringing Altron Document Solutions (ADS) back into continuing operations, the EPS range for continuing operations now includes ADS and Altron has restated H124 comparatives to reflect this. Altron expects to report basic headline EPS (HEPS) of 76–81c for continuing operations (+171–189% y-o-y) and 71–76c for the group (+209–217%), which implies a loss from discontinued operations of 5c. For basic EPS, Altron expects to report H125 continuing EPS of 73–76c (+387–407% y-o-y) and group EPS of 67–72c (+177–183% y-o-y), which implies a loss from discontinued operations of 4–6c. H124 basic HEPS reduces by 22c to 28c for continuing operations and by 2c to a loss of 65c for the group. This implies that ADS generated a headline loss per share of 22c in H124 and the company has previously noted that ADS moved into profitability in H224. H124 basic EPS reduces by 23c to 15c for continuing operations and by 1c to a loss of 87c for the group. On the restated numbers, discontinued operations (ie Nexus) generated HEPS of -93c in H124, reducing significantly to -5c in H125.
We maintain our forecasts pending the publication of H125 results, which should include further detail on the impact of bringing ADS back into continuing operations. However, we note that on an initial view, our forecast for losses from discontinued operations in FY25 appears very conservative.
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Research: Investment Companies
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