Altron Group full-year revenue down 5%

Altron Group, a leading technology company, has reported a 36% increase in full-year headline earnings per share from its continuing operations. The company, which plays a crucial role in assisting South African businesses with their digital transformation journeys, has seen positive results despite the challenging economic environment. Werner Kapp, the CEO of Altron, discussed the company's performance and future outlook in an interview with CNBC Africa's Fifi Peters. Kapp highlighted the ongoing trend of digitization, emphasizing that technology plays a vital role in helping customers solve their problems. He pointed out that the healthcare sector, in particular, has experienced significant benefits from technology investments. Altron's focus on being a partner to its clients in their digital transformation journey has contributed to the company's success, with 8% revenue growth and significant profit growth from continuing operations. While discussing the company's discontinued operations, Kapp mentioned the progress made in disposing of the document solutions and Nexus businesses. Despite some delays due to non-disclosure agreements, Altron remains committed to managing these businesses for value and ensuring a smooth transition. Kapp also addressed the current M&A environment, highlighting the importance of capital allocation and the company's strengthened balance sheet, which enables it to explore acquisition opportunities. In response to questions about economic headwinds impacting digital transformation initiatives, Kapp acknowledged the challenging trading conditions but noted that Altron's focus on annuity business and strategic sectors like telematics and FinTech has helped mitigate some of the challenges. The company's ability to offer repeat business services and adapt to market demands has positioned it well in the current environment. Kapp also touched on the success of Netstar, Altron's subsidiary, which has seen growth in customers and market share. He attributed this growth to market opportunities, effective execution, and technology investments. The company's use of generative AI, especially in the Fleet Bureau within Netstar, has allowed for efficient data processing and actionable insights, ultimately enhancing customer service. Looking ahead, Kapp discussed the potential impact of the upcoming elections on the business landscape. While emphasizing the importance of safe and fair elections, he also highlighted the need for policy stability and economic growth to drive positive change in South Africa's economy. Overall, Altron Group's ability to navigate the challenges of the current economic environment while leveraging technology for growth underscores its resilience and strategic vision in the digital era.