reports
- Richard Williamson
Altron - Further margin expansion in H125
Altron reported a 105% y-o-y increase in operating profit before capital items in H125, with margin expansion of 5.1pp to 9.8%. The Platforms businesses were particularly strong, with Netstar and FinTech achieving material revenue and profit growth. Altron Digital Business, still in the integration phase, saw some non-recurring costs and the shift of several project starts into H225, but has seen indications that performance should improve in FY26. Management raised its FY26 operating profit tar...
- Richard Williamson
Altron - Strong earnings growth in H125
Altron has provided an H125 trading update pointing to a more than doubling of headline EPS from continuing operations and an even larger increase in reported EPS. Having restated comparatives to reflect the move of Altron Document Solutions back to continuing operations, the improving performance of the remaining discontinued operation has become clearer, showing significantly reduced losses year-on-year. We maintain our forecasts pending the H125 results on 4 November.
- Richard Williamson
Altron - Keeping Altron Document Solutions
Altron’s AGM trading update confirmed that the positive momentum seen in H224 has continued so far in H125. The company also announced that it had decided to stop the sale process for Altron Document Solutions (ADS) and bring the business back into continuing operations within the IT Services segment. We maintain our forecasts pending further clarity on ADS financials, noting that the business returned to profitability in H224 and is self-funding.
- Richard Williamson
Altron - Transformation plan drives margin growth
Altron’s FY24 results confirmed good progress with its strategic plan, with headline EPS from continuing operations up 36% y-o-y and well ahead of our forecast. The bulk of restructuring is now complete and has already boosted operating margins from 4.9% in FY21 to 9.0% in FY24. Altron is now positioned to drive revenue and profit growth through a combination of innovation, cross-selling and ongoing operational improvements.
Edison issues initiation on Altron (AEL): Rising star
Edison Investment Research Limited Edison issues initiation on Altron (AEL): Rising star 04-Apr-2024 / 11:17 GMT/BST The issuer is solely responsible for the content of this announcement. London, UK, 4 April 2024 Edison issues initiation on Altron (AEL): Rising star Altron is a South African-based provider of platforms and IT services, helping businesses transform and operate their IT. As part of the plan to refocus on strategic growth opportunities and to improve profitability, management has set ambitious medium-term profit targets. The group has made good progress to d...
- Richard Williamson
Altron - Rising star
Altron is a South African-based provider of platforms and IT services, helping businesses transform and operate their IT. As part of the plan to refocus on strategic growth opportunities and to improve profitability, management has set ambitious medium-term profit targets. The group has made good progress to date, and we forecast a headline EPS CAGR of 21% from FY23 to FY26e. In our view, this performance is not yet reflected in the current share price. Full FY24 results in May should provide be...
- Ruhan du Plessis
Allied Electronics | Utilising the balance sheet for growth
Altron's H1'20 results were softer than we had expected as growth projects did not generate EBITDA but consumed working capital. Consequently, cashflows were limited, but net debt to EBITDA of 1.1x was maintained within the target of 1x demonstrating the improved health of the balance sheet. We expect H2'20 to include an unwind of R350m of working capital and project revenue recognition which should improve EBITDA. Altron will probably maintain the higher working capital levels into the futur...
1 director bought
A director at Allied Electronics Corporation Limited bought 161,138 shares at 22.850ZAR and the significance rating of the trade was 74/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over ...
- Ruhan Du Plessis
Allied Electronics | Shifting into growth mode
Altron's FY'19 results evidenced the completion of its turnaround strategy. Non-core asset disposal strengthened the balance sheet with net debt to EBITDA improving to 0.7x (FY'16: 4x). We expect future growth from continued sales optimisation followed by targeted business development with bolt-on acquisitions. Management has executed well, with Altron one year ahead of its strategy of doubling its FY'17 EBITDA of ZAR950m in five years, with a FY'19 EBITDA of ZAR1.6bn, increasing 68% over the pa...
- Ruhan Du Plessis
Allied Electronics | Back on the front foot
Altron is 18 months into its turnaround strategy and has successfully disposed of eight non-core assets. The latest results show a willingness to re-invest in the key areas of the business, particularly ICT. Encouragingly, normalised HEPS growth increased to 25% y/y in H1'19 from 16% a year earlier. The re-instatement of Altron's dividend (after three years of absence) highlights the progress of the turnaround. Net working capital days has declined 133% since FY'15, while free cash flow has ...
Ford Equity International Rating and Forecast Report
Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind...
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