JSE Listed Technology cluster altron has reported an 8% decline in continuing core earnings per share (Heps), while revenue rose 19% to R9.5bn for the year to the end of February 2023.
The group, led by former Dimension Data chief executive Werner Kapp, said it managed to deliver a “resilient” set of results, despite what it called “increasingly difficult business conditions.”
“Altron’s ability to deliver double-digit revenue growth is evidence of the group’s strong annuity and defensive earnings base,” it said in a statement.
However, results were negatively affected by non-cash provisions related to exposure to a broadband contract in Pretoria and excess inventory related to another network in Johannesburg. These provisions harm Heps; Adjusted Heps increased 19%, matching growth at the top line.
Ebitda, a measure of operating performance, from continuing operations increased 2% to R1.2bn, while working capital decreased by R321m to R1.3bn. Generated cash flow was R974 million, with free cash flow of R412 million. Net debt was reduced.
“Altron has a strong balance sheet and remains a highly cash generator with low leverage ratios, providing flexibility to pursue its growth strategy,” it said in the Monday statement.
CEO Kapp said: “As we look into fiscal 2024, we have a clear growth strategy against which we are executing, and we are already seeing the positive results of our earnings enhancement strategy across our two largest businesses, Netstar and Altron Systems Integration.
“As a group, we remain focused on driving revenue growth and improving operating leverage while investing in our growth businesses…Despite difficult business conditions, I am excited about the opportunity before us,” he said.
Altron approved a final dividend of 19 cents per share in addition to the interim dividend of 16 cents, bringing the total dividend for the year to 35 cents per share, up 17% from last year. The shares were trading 2.9% higher on Monday morning at R8.20 each.
Altron also announced on Monday that his group’s chief financial officer, Nicholas Bofilatos, resigned to emigrate to Europe with his wife. He has been succeeded in the role by Carel Snyman, whose experience includes finance roles at Naspers, MultiChoice and Aztomix, a company he co-founded. – © 2023 Central Media News
- Look for an interview with Werner Kapp later this week on the TechCentral Show