Altron's revenue jumps 19% to R9.5bn

Admire Moyo
By Admire Moyo, ITWeb's news editor.
Johannesburg, 15 May 2023
Werner Kapp, Altron Group CEO.
Werner Kapp, Altron Group CEO.

JSE-listed technology services firm Altron’s revenue increased by 19% to R9.5 billion.

The company today published its financial results for the 12-month period ended 28 February.

In a statement, Altron says despite increasingly tough trading conditions, its ability to deliver double-digit revenue growth is evidence of the group’s strong annuity and defensive earnings base.

According to the firm, results for continuing operations were negatively impacted by non-cash provisions, relating to the City of Tshwane exposure and for excess inventory held in relation to the Gauteng Broadband Network contract which was not renewed.

The extension of the multibillion-rand Gauteng Broadband Network contract, for phase two, came to an end on 8 March.

At the time, Altron said the rollout of the project experienced delays outside of its control, resulting in fewer sites being deployed than initially scoped for in the original tender awarded.

In its results, Altron says earnings before interest, taxes, depreciation and amortisation was up 2% to R1.2 billion, with continuing earnings per share up 80% to 36c per share, and headline earnings per share down 8% to 47c per share.

Group working capital reduced by R321 million to R1.3 billion; and R974 million of cash flow was generated from the group, with free cash flow of R412 million.

Altron approved a final dividend of 19c on top of the interim dividend of 16c. The total dividend for the year of 35c per share is up 17% compared to last year.

The company says it has a strong balance sheet and remains highly cash-generative with low gearing ratios, providing flexibility to pursue its growth strategy.

Altron Group CEO Werner Kapp says: “Altron’s revenue growth of 19% demonstrates our resilience in the face of extremely tough economic conditions.

“As we look into FY2024, we have a clear growth strategy against which we are executing, and we are already seeing the positive results of our profit improvement strategy in our two biggest businesses Netstar and Altron Systems Integration.

“As a group, we remain focused on driving revenue growth and improving operating leverage, while investing in our growth businesses. Customer obsession is at the core of our strategy, as we partner with our customers on their digital transformation journeys, while also protecting them from increased cyber security risks. Despite continuing tough trading conditions, I am excited by the opportunity before us.”

Altron announced that Nicholas Bofilatos has resigned as group chief financial officer (CFO), having made the decision to move to the Netherlands, joining his wife who took up a job opportunity there.

Carel Snyman has been appointed as the new CFO for the Altron Group. Snyman is a qualified CA (SA) with over 20 years of financial experience, including as a financial executive at Naspers, CFO of MultiChoice Africa and, more recently, as CFO of Aztomix, a company he co-founded.

Altron notes that as a CA (SA) with technology and entrepreneurial experience locally and internationally, Snyman has the right experience, skills and high-performance culture required to drive its growth strategy.