JSE-listed technology group Altron has issued a voluntary operational update for the six months to 31 August 2025, describing its performance in the period as “resilient” as strong growth in its “platforms” segment offset pressure in IT services.
The company – with operations spanning fintech, telematics, IT services, security and document solutions – said the operating environment for IT services has been “appreciably more challenging” than a year ago, both globally and in South Africa, with constrained IT budgets and weak consumer spending.
Group revenue is expected to be marginally softer, with continuing operations flat for the period. Earnings before interest, tax, depreciation and amortisation (Ebitda) are anticipated to be in line with the first half of the 2025 financial year, while operating profit is set to show single-digit growth.
Altron’s “platforms” segment, anchored by Altron Fintech and vehicle-tracking unit Netstar, delivered double-digit revenue growth, supported by strong annuity income streams. Fintech led the charge, with robust gains in revenue, Ebitda and operating profit, driven by increased SME customer acquisition and rising transaction volumes.
In IT services, however, revenue and margins remained under pressure as clients curbed spending. Altron Digital Business is projected to report an interim operating loss, though a profit-improvement strategy is being implemented. By contrast, Altron Security and Document Solutions posted solid growth, benefitting from corrective actions taken in recent years.
Global slowdown
The “distribution” segment continued to feel the effects of a global slowdown in electrical component demand.
Altron also confirmed the sale of Altron Nexus, effective 1 August 2025, marking its full exit from discontinued operations.
The group’s interim financial results will be released on 3 November 2025. – © 2025 NewsCentral Media
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