Netstar owner Altron shrugs off Gauteng IT contract hits as it ups final dividend by 74%

Technology group Altron says it expects it can grow its operating profit from its continuing operations by over a third in just two years. The owner of vehicle tracker Netstar says this will be driven by new products and partnerships with vehicle and other original equipment manufacturers in Asia and comes as it battles with some profit woes related to major contracts with metros in Gauteng.

The ICT group reported on Monday that it swung into a headline loss of R93 million its year to end February, from earnings of R108 million previously, hit by R462 million in provisions in its first half. With this came writedowns, including to business affected by issues with major metro contracts in Gauteng, such as the loss of a lucrative broadband contract to MTN. It has also made provisions for its exposure to the City of Tshwane over another contract dating back to 2015.

But operating profit from continuing operations, excluding its ATM hardware and support business sold in July 2023, lifted 33% to R742 million to end-February, while cash generation picked up and net debt fell. The group expects R1.1 billion in continuing operating profit by its 2026 financial year.