Altron CEO Werner Kap said a three-year strategic overhaul of the group had delivered strong financial compound earnings growth.
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Altron’s share price leapt over 15% and it is paying out a R500 million special dividend after a three year strategic overhaul tripled headline earnings per share (HEPS) and shifted the group decisively towards its platform business.
The results for the year to February 29 generated a final dividend of 72 cents a share, a 44% increase on the final dividend last year, while the total dividend for the year ended 33% higher at 120 cents a share. In addition, a special cash dividend of 120 cents a share was declared.
The share price traded 15.3% higher at R27,22 on the JSE Monday morning - three years ago the share was priced at a lowly R7,15.
“The operational momentum established in the first half provided a solid foundation for an even stronger second-half performance. HEPS increased by 34% to 239 cents per share and was supported by the strong balance sheet and cash flow generation,” said the CEO, Werner Kapp, in a statement.
He said financial 2026 marked the end of the second phase of a strategy Kapp’s team set out in 2023, which focused on ‘Foundational and Accelerated Growth’.
Over the last three years, operating profit grew at a 34% CAGR (compound annual growth rate), HEPS at a 48% CAGR, and dividends at a 51% CAGR. Return on invested capital had jumped from 7% to 23% since 2024.
Altron had invested more than R1.8 billion in growth capital expenditure over the three-year period, primarily into its platform businesses, and ended 2026 with R1.3bn in cash and over R1bn in undrawn facilities, providing substantial flexibility for continued growth.
"We have built a strong foundation and established a track record of execution," Kapp said.
He said the group was moving into its next phase, which he called “Transformative Growth”.
Altron had transformed into a multi-platform company, well positioned to drive growth in South Africa’s digital economy, supported by an ungeared balance sheet and a higher-quality, annuity-driven earnings base, Kapp said.
Operating profit increased by 35% to R1.2bn, while cash generated from operations was up strongly to R1.9bn, reflecting the repositioning of the portfolio toward high-margin, annuity-revenue businesses, and improved earnings conversion.
Revenue edged up 1% to R9.6bn, as 12% growth in the Platforms segment offset weaker conditions in IT Services.
Altron FinTech was the standout performer, delivering an operating profit of R561m, up 33% year-on-year and representing more than a doubling of operating profit over three years.
Netstar crossed the R1bn earnings before interest, tax, depreciation, and amortisation (EBITDA) threshold for the first time, delivering 16% EBITDA growth.
The South African business delivered 17% year-on-year EBITDA growth, and operating profit was up 78%. Netstar’s subscriber base had grown from 1.38 million in 2023 to 2.2 million, at a 17% CAGR over three years.
Altron HealthTech increased operating profit by 19% to R143m, with annuity revenue rising to 96% of total revenue. The direct private practice network delivered high-single-digit growth, with more than 2,000 new practices added during the period.
Altron Digital Business faced headwinds in 2026, with revenue down 8% and a loss-making first half. Management intervention delivered a profitable second half, with the business closing the year with a R7m operating profit and a stronger pipeline.
Altron Security grew revenue 4% to R411m and operating profit 5% to R90m, supported by its annuity-based platform and digital signing businesses, which comprise 80% of revenue.
Altron Document Solutions increased operating profit 61% to R98m, which was also a complete turnaround from a R97m operating loss just two years prior. Software and digital solution sales more than doubled, reflecting a transition to higher-margin managed services and decisive operational leadership.
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