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Altron has reported its annual profit after tax grew by a third and has declared a special dividend thanks to a strong performance from its FinTech unit and as Netstar crossed the R1bn earnings before interest, tax, depreciation and amortisation (ebitda) milestone for the first time.The group said on Monday revenue increased 1% to R9.6bn, driven by resilient revenue growth of 12% in the platforms segment, offset by a decrease in revenue in the IT services segment and distribution.Operating profit grew 25% to R1.2bn, driven by its platform segment — Netstar, FinTech and HealthTech. Ebitda was up 10% at R2bn, while profit after tax rose 32% at R816m. Cash generated from operations was R1.9bn.HEPS rose 34% to 239c and a final dividend of 72c per share was declared, taking the total dividend for the year to 120c. Shareholders were also rewarded with a special dividend of 120c, reflecting strong cash generation and balance sheet strength.“The operational momentum established in the first half of the year provided a solid foundation for an even stronger second-half performance,” said CEO Werner Kapp.The group said Altron FinTech was the standout performer in FY26, delivering operating profit of R561m, up 33% year on year.In addition, Netstar crossed the R1bn ebitda milestone for the first time, delivering steady growth, improved profitability and a highly predictable annuity revenue base. “The results reflect the successful execution of a disciplined, multi-year strategy focused on building an operational structure to scale and regaining market share,” the group said. The subscriber base increased from 1.38-million in 2023 to 2.21-million by the current financial year. The South African business continues to outperform, it said.In its IT services unit, Altron Document Solutions delivered operating profit of R98m, up 61% year on year. This represents a significant turnaround compared with an operating loss of R97m two years ago.Commenting on Altron’s strategy and outlook, Kapp said FY26 marked the successful conclusion of its accelerated growth phase. “As we enter our next phase, transformative growth, Altron has transformed into a multi-platform business uniquely positioned to drive sustainable growth in South Africa’s digital economy, underpinned by an ungeared balance sheet and a higher-quality, annuity-driven earnings base.“I am excited by the growth opportunity of our platform businesses in a market underpinned by digitisation in mobility, payments and identity, areas where Altron has years of experience, meaningful scale and embedded infrastructure.”He said the group has built a strong foundation and established a track record of execution. The focus continues to be to invest in and expand these businesses and sustain a resilient, diversified earnings base, he said.Business Day
