Altron navigates challenging IT market with resilient half-year performance

Altron Limited has provided an operational update for the six months ending August 31, 2025, indicating a resilient performance with continued growth in its Platforms segment. The overall operating environment for IT services proved challenging globally and in South Africa, marked by constrained IT budgets and reduced consumer spending. Despite these challenges, the group's strong and diversified portfolio mitigated the impact on its IT services. Overall, group revenue is expected to be marginally softer, with continuing operations remaining flat for the period. Group EBITDA is anticipated to be similar to the first half of the 2025 financial year, while group operating profit is projected to show single-digit growth.

The Platforms segment was a key growth driver, showing double-digit revenue growth and strong increases in EBITDA and operating profit, largely due to Altron Fintech's strong double-digit growth and increased SME customer acquisition. Netstar also adjusted its depreciation policy, extending the period for capital rental devices to an average of five years from three, effective March 1, 2025. Conversely, the IT Services segment faced headwinds with reduced client expenditure and margin pressure, leading to an operating loss for Altron Digital Business, though Altron Security and Altron Document Solutions achieved healthy growth. The Distribution segment navigated a cyclical global slowdown, resulting in lower revenue and operating profit.

Altron also confirmed the successful sale of Altron Nexus, effective August 1, 2025, fulfilling its commitment to exit discontinued operations and streamline its focus on core businesses. The group's interim financial results are slated for release on SENS on Monday, November 3, 2025. This operational update is based on unaudited financial information.