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Altron Limited (AEL) investor relations material
Altron Limited Status update summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Business transformation and financial performance
Profit more than doubled over 3.5 years, with FY 2023 profit at ZAR 450 million and FY 2026 expected to exceed ZAR 1 billion, alongside higher operating margins now in double digits.
All business units are profitable or on track to profitability, with no loss-making entities in the portfolio.
Balance sheet remains ungeared, with over ZAR 1 billion in available debt facilities and strong free cash flow generation.
Annuity revenue now constitutes over 65% of total earnings, with platform businesses exceeding 90% annuity revenue.
Return on invested capital improved from below WACC to 19% in the last year, reflecting disciplined capital allocation.
Operating performance and environment
Strong operational momentum in H2 FY2026 is expected to continue for the full year, building on a solid H1 foundation.
Continuing operations achieved low double-digit EBITDA growth and over 20% operating profit growth year-to-date.
Platforms segment contributed about 45% of revenue and 90% of EBITDA and operating profit.
Revenue mix shifted toward annuity-based income, exceeding 65% of total revenue, supporting higher cash flow.
IT Services segment faced ongoing market constraints, offsetting Platforms segment growth.
Segmental performance
Netstar subscriber base grew from 1.2 million to over 2 million, with strong growth in South Africa and improving metrics in Australia.
FinTech achieved high-teen revenue growth and high-twenties percent EBITDA and operating profit growth, with annuity revenue over 80%.
HealthTech delivered low-twenties percent EBITDA growth and high-teen operating profit growth, with improved margins due to completed R&D spend.
Altron Digital Business returned to operating profitability after restructuring, with cost-reduction measures showing results.
Altron Document Solutions improved EBITDA and operating profit by over 30% year-to-date.
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