Altron lifts interim dividend 20% as profit growth outpaces revenue dip

JSE-listed technology group Altron has reported strong interim results for the six months ended 31 August 2025, delivering double-digit profit growth and rewarding shareholders with a 20% increase in its interim dividend.

The South African-founded group, which provides IT services, digital solutions, and electronic component distribution, said group operating profit from continuing operations rose 15% to R549 million, while headline earnings per share (HEPS) from continuing operations climbed 22% to 96 cents.

Although group revenue edged down 1% to R4.8 billion amid a challenging IT services environment, Altron’s strategic focus on higher-margin, recurring income streams helped lift profitability.

Altron continued to invest heavily in growth during the period, deploying R370 million in capital expenditure, of which R342 million was directed toward expansion initiatives. 

The company’s platforms segment includes Netstar, Altron FinTech, Altron HealthTech, Altron Digital Business and Altron Security. Netstar, Altron’s vehicle tracking and recovery business, delivered particularly strong results, with revenue up 8% to R1.2 billion and operating profit surging 54% to R225 million.

Netstar continues to gain momentum with subscribers up 11% to 2.1 million.

Speaking to Stephen Grootes on The Money Show, Werner Kapp, CEO of Altron says the growth in Netstar can be the investments made in the business.

"Specific investments we've made in the business over the last three years, particularly in what we call our big data as a service, which is really enhancing our telematics offering to different types of fleet enterprises," said Kapp.

"The majority of the double-digit subscriber growth that you've seen is really coming from our South African business. So I think the business continue to perform very well in South Africa and I'm obviously biased, but I'd like to think it's because we're delivering good service and value to our customers at a competitive price,"added Kapp.

To hear more from Altron CEO, Werner Kapp about the company's interim results, listen to the interview audio at the top of the article.