Wrap Text
Audited Consolidated Financial Results for year ended 28 Feb 2026 and Declaration of Final and Special Cash Dividend
ALTRON LIMITED
Registration number 1947/024583/06
(Incorporated in the Republic of South Africa)
Share code: AEL
ISIN: ZAE000191342
("Altron" or "Group" or "the Company")
AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2026 AND
DECLARATION OF FINAL AND SPECIAL CASH DIVIDEND
HEPS up 34% - driven by disciplined focus on execution of its strategy across
all businesses and continued operational momentum
PERFORMANCE HIGHLIGHTS
Continuing operations(1) for the year ended 28 February 2026 ("FY26")
- R1.2 billion operating profit +25% (FY25: R972 million), driven by Altron's
Platform segment (Netstar, FinTech, HealthTech)
- 12.6% operating profit margin +250 bps (FY25: 10.1%)
- R2.0 billion EBITDA(2) +10% (FY25: R1.8 billion)
- 20.8% EBITDA(2) margin +180 bps (FY25: 19.0%)
- R816 million net profit after tax +32% (FY25: R616 million)
- 239 cents HEPS +34% (FY25: 178 cents)
- 210 cents EPS +35% (FY25: 156 cents)
- 22.7% return on invested capital ("ROIC") +390 bps (FY25: 18.8%)
- Ungeared balance sheet supported by strong cash generation, with cash
generated from operations of R1.9 billion and closing cash balance of more
than R1 billion.
The Board declared the following dividend to shareholders in FY26
- 48 cents interim ordinary dividend per share +20% (FY25: 40 cents)
- 72 cents final ordinary dividend per share +44% (FY25: 50 cents)
- 120 cents total ordinary dividend per share +33% (FY25: 90 cents) which
translates into a pay-out ratio of 50%
- 120 cents special dividend per share (FY25: 0 cents)
Notes
(1) Continuing operations include: Netstar, Altron FinTech, Altron
HealthTech, Altron Digital Business, Altron Security, Altron Document
Solutions, and Altron Arrow.
Commentary relates to continuing operations unless specified otherwise.
Discontinued operations include Altron Nexus which was sold on 1 August
2025.
(2) Earnings before interest, tax, depreciation and amortisation ("EBITDA")
Group results from total operations (including discontinued Altron Nexus, sold
1 August 2025): operating profit R1.2bn (+44%), EBITDA R2.0bn (+18%), EPS 190
cents (+84%), HEPS 229 cents (+71%).
Commenting on Altron's FY26 results, CEO Werner Kapp said, "We have delivered a
strong full-year result in FY26, with EBITDA of R2.0 billion, operating profit
of R1.2 billion and cash generated from operations of R1.9 billion. The
operational momentum established in the first half of the year provided a solid
foundation for an even stronger second-half performance. HEPS increased 34% to
239 cents per share. Strong cash generation and balance-sheet strength enabled
the Board to increase the final ordinary dividend by 44% to 72 cents per share
and declare a special dividend of 120 cents per share, reflecting the Group's
disciplined approach to capital allocation."
OUTLOOK
Commenting on Altron's strategy and outlook, CEO Werner Kapp said, "FY26 marks
the successful conclusion of our 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.
We have built a strong foundation and established a track record of execution.
Our focus continues to be to invest in and expand these businesses, execute on
our strategic objectives and sustaining a resilient, diversified earnings
base."
KEY BUSINESS HIGHLIGHTS
- Altron FinTech was the standout performer in FY26, delivering operating
profit of R561 million, up 33% year-on-year. This represents more than a
doubling of operating profit over three years from R233 million in FY23,
supported by strong operating margins of 37% and annuity revenue comprising
88% of total revenue in FY26.
- Netstar crossed the R1 billion EBITDA milestone for the first time in FY26,
delivering a resilient performance characterised by 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, evident in the subscriber base growing from 1.38 million in FY23 to
2.21 million by FY26, representing a 17% CAGR over the past three years.
EBITDA grew 16% year-on-year with margins expanding 256 basis points from
41% to 44%, reflecting disciplined cost management and operational
execution. The South African business continues to outperform delivering 17%
EBITDA growth year-on-year, and an EBITDA margin of 49%.
- Within IT Services, Altron Document Solutions delivered an outstanding
result, achieving an operating profit of R98 million in FY26, up 61%
year-on-year. This represents a significant turnaround compared to an
operating loss of R97 million 2 years ago (FY24), reflecting the impact of
decisive leadership, focused operational execution and disciplined cost
management.
DETAILED FINANCIAL OVERVIEW
GROUP PERFORMANCE CONTINUING OPERATIONS
Group revenue increased 1% to R9.6 billion driven by resilient revenue growth
of 12% in the Platforms segment, offset by a decrease in revenue in the IT
Services segment and Distribution. The continued constraint in the South
African enterprise market remains a persistent headwind and is not expected to
change materially in the near term. The contribution of the Platforms segment
towards the Group results continues to grow, with Group annuity revenue
increasing to 67% of total Group revenue, compared to 63% in FY25.
A deliberate focus on deployment of capital into higher-margin, annuity-revenue
growth opportunities resulted in a higher contribution from the Platforms
segment to revenue and profit. In FY26 the Platforms segment contributed 46% to
revenue, 91% to EBITDA and 95% to operating profit.
Operating profit grew by 25% to R1.2 billion in FY26 benefiting from strong
growth in the Platforms segment. Our current year operating profit was impacted
by two once-off events namely the change in depreciation policy at Netstar
(R136 million) and a Pension fund expense (R74 million). In 2025 the Group took
a decision to enhance the pension fund members' benefits by distributing a
portion of the pension fund surplus to our current members and pensioners. This
is a non-cash, non-trading event where the funds are allocated from the surplus
account to the members' benefit accounts. IFRS requires this to be reflected as
an expense in the income statement for past service costs.
Excluding the change in Netstar's depreciation policy and the once-off pension
fund expense, operating profit increased 19% to R1.15 billion.
The Group's taxation expense for FY26 increased by 35% to R203 million,
reflecting a 33% growth in profit before tax as well as the full utilisation of
prior-year assessed losses. The effective tax rate for the year was 21.5%. As
communicated previously, the Group expects its effective tax rate to increase
going forward as assessed losses have been fully utilised, resulting in a
transition toward a more normalised tax rate.
The Group continued to generate strong operating cash flows and remains well
capitalised, providing a solid foundation to execute its strategic priorities.
SEGMENTAL PERFORMANCE OVERVIEW
Altron organises its businesses into the following operating segments:
- Platforms: Netstar, Altron FinTech, and Altron HealthTech.
- IT Services: Altron Digital Business, Altron Security and Altron Document
Solutions.
- Distribution: Altron Arrow.
- Other: Consolidation and other international operations
The segmental overview is derived from the Company's full consolidated annual
financial statements for the year ended 28 February 2026 ("AFS"). For more
detail investors are referred to the AFS and the FY26 results presentation
available on Altron's Investor Relations website www.altron-investors.com
Platforms (Netstar, Altron FinTech, and Altron HealthTech)
- R4.4 billion revenue +12% (FY25: R4.0 billion)
- R1.8 billion EBITDA +21% (FY25: R1.5 billion)
- 41.4% EBITDA2 margin +310 bps (FY25: 38.3%)
- R1.2 billion operating profit +45% (FY25: R798 million)
- 26.2% operating profit margin +600 bps (FY25: 20.2%)
- Annuity revenue 91% (FY25: 89%)
Netstar delivered a strong performance for the period, underpinned by solid
growth in South Africa, which outperformed the overall Netstar result. Revenue
increased by 9% to R2.5 billion, driven by 11% revenue growth in Netstar South
Africa. EBITDA grew by 16% to R1.1 billion, while operating profit increased by
78% to R453 million.
- Netstar continued to grow its market share with the subscriber base growing
9% to 2.2 million. 497 000 gross subscribers were added during the period,
with 189 000 net subscriber additions. Consumer subscribers increased by 8%,
while higher-margin enterprise customers grew by 19%. Churn, excluding
original equipment manufacturer ("OEM") partnerships, was 16%, down from 19%
in the prior year.
- Key operational metrics were maintained above target levels, with contract
fulfilment and pre-fitment conversion rates exceeding 90% and 60%,
respectively, reflecting strong operational execution.
- Netstar revised its depreciation policy at the start of the financial year,
increasing the depreciation period for eligible capital rental devices from
three to an average of five years, based on an independently calculated
useful life assessment. This adjustment better aligns the depreciation
pattern of these assets with their economic lifespan and industry norms. As
a result, the depreciation expense was approximately R136 million lower for
the period than it would have been under the previous policy. Excluding the
change in depreciation policy, Netstar's operating profit increased by 24%.
- Australia, representing less than 5% of Netstar subscribers, remained a drag
on EBITDA and operating profit growth in FY26, with recovery slower than
anticipated due to once-off items impacting operating profit. The Australian
profit-improvement strategy progressed during the second half of FY26, with
subscriber growth showing improvement.
Altron FinTech increased its revenue by 20% to R1.5 billion and EBITDA by 31%
to R597 million. Operating profit increased 33% to R561 million driven by the
focus on higher margin products and services as well as the scaling effect in
the business.
- Ongoing success in the collection and payment platform continued to drive
the strong performance, with healthy customer acquisition, particularly in
the SME sector, and the number of debit orders and value thereof growing
over 25%, leading to a significant increase in activity on the platform.
- In the Integrated Transaction Solutions business, rentals of point-of-sale
("POS") devices saw strong growth, more than doubling during the period to
over 30 000, in line with the strategy to grow annuity revenue.
- Annuity revenue now represents 88% of Altron FinTech's total revenue.
Altron HealthTech increased revenue by 2% to R403 million, while EBITDA
increased by 22% to R149 million. Operating profit increased by 19% to R143
million, supported by investments made in prior years. This performance
reflects a strong second-half recovery, following a more constrained first
half, underpinned by timely management interventions, cost containment and
focused execution.
- The private practice segment delivered a strong performance, with high-
single digit growth in the Altron HealthTech direct private practice network
in FY26, demonstrating the continued execution of the strategy to protect
and grow the core business.
- Annuity revenue increased to 96%, supported by double-digit growth in both
corporate and private practice network licence revenues and stable switching
volumes. This was partially offset by a decline in project revenues.
-
- The adoption of data-driven services continued, with nine new corporate
customers onboarded and more than 2 000 private practices added during the
period, representing a net addition rate of 1.48 new practices for every
practice churned.
IT Services (Altron Digital Business, Altron Security and Altron Document
Solutions)
The IT Services segment delivered a mixed performance in a challenging
operating environment, with overall revenue decreasing by 5% to R4.8 billion.
EBITDA declined by 17% to R255 million, while operating profit decreased by 15%
to R195 million. Performance across the portfolio was uneven. Altron Digital
Business ("ADB") and the IT services component of Altron Security were impacted
by subdued enterprise IT spending and industry-wide pressures, including
changes to OEM partner rebate structures. These pressures were partially offset
by a strong performance and turnaround in Altron Document Solutions, resulting
in an overall muted but resilient segment outcome.
ADB remained the most challenging business within the portfolio. Revenue
decreased by 8% to R3.0 billion; however, following a loss-making first half,
the business delivered a profitable second half after the implementation of a
profit-improvement strategy. For FY26, ADB reported EBITDA of R26 million and
operating profit of R7 million, reflecting a material recovery from the
first-half operating loss of R42 million.
- The second-half improvement reflects decisive management actions, including
cost-base reduction, the stabilisation and renewal of annuity contracts, and
improved operational execution. While order intake recovery was slower than
initially anticipated, meaningful improvement was evident in the second
half, with the prospective pipeline at the end of FY26 stronger than earlier
in the year. Notwithstanding this progress, the recovery remains sensitive
to broader cyclical conditions within the IT services sector
Altron Security increased revenue by 4% to R411 million and operating profit
increased by 5% to R90 million. The platform-based identity and digital signing
businesses, which generate annuity revenue, comprise approximately 80% of
Altron Security's revenue and delivered a resilient performance. This was
partially offset by continued pressure in the IT services component of the
business, which remains exposed to the same constrained enterprise spending
environment affecting the broader IT services market.
- Despite short-term market pressures, the long-term opportunity in national
digital identity, public key infrastructure and digital signing remains
intact, with Altron Security retaining a strong strategic position in these
markets.
Altron Document Solutions reflected a 2% decrease in revenue in FY26: however,
EBITDA increased by 46% to R123 million and operating profit increased by 61%
to R98 million.
- Revenue was impacted by changes in customer buying patterns, with increased
demand for more cost-effective and digitally enabled solutions.
- The business continued its transition toward higher-margin managed and
support services, with the benefits of prior-year corrective actions and
cost-cutting initiatives becoming evident during the year. Software and
digital solution sales more than doubled, while EBITDA margins expanded by
3%, driven by an improved sales mix and the profit-improvement strategies
implemented in FY24 and FY25.
CAPITAL STRUCTURE AND WORKING CAPITAL
The Group continued to generate strong operating cash flows of R1.9 billion,
closing the year with cash of R1.3 billion. This reflects the deliberate
repositioning of the portfolio toward higher-margin, annuity-revenue
businesses, earnings quality has improved, cash conversion has strengthened and
the balance sheet is in excellent shape.
Total capital expenditure amounted to R800 million (FY25: R708 million), of
which R739 million (FY25: R645 million) was directed toward growth initiatives,
predominantly within the Platforms ecosystem. This comprised R492 million
(FY25: R442 million) in Netstar capital rental devices, R79 million (FY25: R31
million) in Altron FinTech devices, and R75 million (FY25: R32 million) in
systems, primarily supporting enhanced integrations and fleet bureau
capabilities within Netstar. A further R59 million (FY25: R69 million) was
invested in internally generated intangible assets, principally R20 million
toward the HealthTech oncology application (total investment of R30 million,
with R10 million invested in FY25) and R20 million in R&D enhancements to the
HealthTech platform. Investment in Altron HealthTech's oncology initiative is
now substantially complete, and the Group's forward capital programme is
focused on Altron FinTech and Netstar.
Working capital increased R203 million to R1.6 billion (FY25: R1.4 billion), a
15% increase year on year, predominantly attributable to the Platforms segment.
This remains aligned with the operating profit growth delivered by the
Platforms businesses and reflects a disciplined and value-accretive use of
capital.
The Group has significantly strengthened its financial profile over the past
three years, driven by a deliberate shift toward higher-quality earnings,
platform-based businesses. This disciplined approach to capital allocation has
resulted in a meaningful improvement in returns, with return on invested
capital increasing from 7% in FY23 to 23% in FY26, while enabling the return of
excess cash to shareholders through dividends.
The balance sheet remains strong, with the Group well capitalised and
comfortably within covenant levels following dividend payments. Committed
undrawn facilities of more than R1 billion, together with additional extended
facilities and strong cash-generative businesses, provide substantial
flexibility to support future organic and selective inorganic growth. The Group
will continue to invest in strengthening its core platform businesses, applying
a disciplined and balanced approach to capital deployment to support long-term
value creation.
FINAL AND SPECIAL CASH DIVIDEND
Altron's dividend policy targets a payout of at least 50% of HEPS from
continuing operations, subject to prevailing circumstances and strategic
capital requirements.
The Board approved a 44% increase in the final gross cash ordinary dividend to
72.00 cents per share (57.60 cents net of 20% dividend withholding tax) for the
year ended 28 February 2026 bringing the total ordinary dividend for FY26 to
120.00 cents per share, representing a 33% increase (FY25: 90.00 cents) for the
year. The final ordinary dividend will be payable to shareholders registered
with the Company as of the close of business on the record date listed below.
The Board confirmed that the solvency and liquidity test as contemplated by the
Companies Act, No. 71 of 2008, as amended, has been duly considered, applied,
and satisfied. This is a dividend as defined in the Income Tax Act, No. 58 of
1962 and is payable from income reserves. The income tax number of the Company
is 9725149711.
In addition to the final gross cash ordinary dividend referred to above, the
Board has declared a gross cash special dividend of 120.00 cents (96.00 cents
net of dividend withholding tax) (2025: nil) for the year ended 28 February
2026, payable to shareholders recorded in the register of the Company at the
close of business on the record date appearing below.
The special dividend has been declared from cash reserves and therefore does
not constitute a distribution of 'contributed tax capital' as defined in the
Income Tax Act, 58 of 1962. A dividend withholding tax of 20% will be
applicable to all shareholders who are not exempt.
Application has been made to the exchange control division of the South African
Reserve Bank ("SARB") for approval of the cash special dividend. Once received,
the finalisation information pertaining to the payment of the special dividend
will be communicated to shareholders.
The issued share capital at the declaration date of both the final cash
ordinary and special dividends is 414 019 078 including 30 837 778 treasury
shares.
The expected salient dates in respect of the final cash ordinary and special
dividends will be as follows:
DIVIDEND DATES
2026
Declaration date Monday, 25 May
Last date for finalisation announcement to be released
on SENS by 11:00* Monday, 8 June
Last day to trade 'cum' dividend Monday, 15 June
Shares commence trading 'ex' dividend Wednesday, 17 June
Record date Friday, 19 June
Payment date Monday, 22 June
* Subject to change depending on the receipt of SARB approval. Any changes will
be announced on SENS.
Share certificates may not be dematerialised or re-materialised between
Wednesday, 17 June 2026 and Friday, 19 June 2026, both days inclusive. Ordinary
shareholders who hold dematerialised shares will have their accounts at their
CSDP or broker credited or updated on Monday, 22 June 2026. Where applicable,
dividends in respect of certificated shares will be transferred electronically
to shareholders' bank accounts on the payment date. Where the transfer
secretaries do not have the banking details of any certificated shareholders,
the cash dividend will be held in trust by the transfer secretaries pending
receipt of the relevant certificated shareholder's banking details after which
the cash dividend will be paid via electronic transfer into the personal bank
account of the certificated shareholder.
FY26 RESULTS PRESENTATION
Shareholders are reminded that Altron will host a virtual presentation at
9:30am SAST today (25 May 2026), to present the FY26 results to investors.
- The webcast registration link is
https://78449.themediaframe.com/links/altron260525.html and can be accessed
on the Altron Investor Relations website www.altron-investors.com
- A Questions and Answers facility will be available via webcast during the
live presentation or can be emailed to investors@altron.com
ALTRON CAPITAL MARKETS DAY 9 JUNE 2026
The FY26 year-end marks the completion of Altron's Accelerated Growth phase of
its strategy. Having delivered three years of accelerated growth, which
strengthened margins, streamlined the portfolio and embedded operational
discipline Altron is now positioned to enter its next phase of growth.
The Capital Markets Day marks the beginning of Altron's next phase,
Transformative Growth; deliberate, platform-driven growth with a structural
alignment to South Africa's digital economy and AI.
Date: Tuesday 9 June 2026
Time: 10:00 to 15:00 SAST
Attendance: Webcast or in-person at Altron Woodlands Campus 20 Woodlands Drive
Woodmead Johannesburg
Registration and additional information: Altron's Investor Relations website
www.altron-investors.com
SHORT FORM ANNOUNCEMENT
This short-form announcement and the results contained in this short form
announcement have been prepared in compliance with the Listings Requirements of
the JSE Limited and contains only a summary of the information in the full
consolidated annual financial statements for the year ended 28 February 2026
("AFS") and does not contain full or complete details. The AFS can be found on
the JSE cloudlink at:
https://senspdf.jse.co.za/documents/2026/jse/isse/aele/FY26.pdf.
Any investment decisions by investors and/or shareholders should be based on
consideration of the AFS as a whole.
The AFS have been audited by the Company's auditors, PricewaterhouseCoopers
Inc. ("PwC"), who expressed an unmodified audit opinion thereon. The auditor's
report is available, along with the AFS, on the Company's website at
www.altron.com.
FORWARD LOOKING STATEMENTS DISCLAIMER
This short-form announcement is the responsibility of the directors and
contains forward-looking statements that relate to Altron's future operations
and performance. Such statements have not been reviewed or reported on by the
Company's external auditors and are not intended to be interpreted as
guarantees of future performance, achievements, financial or other results.
They rely on future circumstances, some of which are beyond management's
control, and the outcomes implied by these statements could potentially be
materially different from future results. No assurance can be given that
forward-looking statements will be accurate; thus, undue reliance should not be
placed on such statements.
For and on behalf of the Board.
Mr. S van Graan Mr. W Kapp Mr. C Snyman
Chairman Group Chief Executive Chief Financial Officer
CORPORATE INFORMATION
Directors:
Mr SW van Graan (Chairman)#, Mr WG Kapp (Group Chief Executive Officer)*, Mr C
Snyman (Group Chief Financial Officer)*, Mr GG Gelink#, Dr P Mnganga#,
Ms S Rapeti#, Mr G Kouteris#, Ms N Siyotula#, Mr TR Ngara^, Mr A Ball^, Mr BW
Dawson^.
* Executive Director
# Independent Non-Executive Director
^ Non-Executive Director
Registered Office:
Altron Campus, 20 Woodlands Drive, Woodlands Office Park, Woodmead, Gauteng,
South Africa, 2191
25 May 2026
JSE Equity Sponsor:
Investec Bank Limited
Transfer Secretaries:
Computershare Investor Services Proprietary Limited,
1st Floor, Rosebank Towers,
15 Biermann Avenue,
Rosebank, 2196
Group Company Secretary
Ms M Ngcobo
Investor Relations
Ms Phillipe Welthagen
Contact: Phillipe.welthagen@altron.com
+27 84 512 5393
Date: 25-05-2026 07:05:00
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