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Monday, 10 June 2024 14:47

Alexforbes posts strong gains and declares special dividend.

By Lehlohonolo Lehana.

Financial services group Alexforbes has reported a solid performance, delivering strong revenue growth in an uncertain economic environment, it announced on Monday.

The group reported a 12% increase in operating income to R3.9bn for the 12 months to end-March due to the deliberate execution of its strategy, new business wins and the implementation of acquisitions, it said in a statement.

Headline earnings per share (HEPS) from total operations increased 29% to 61.5c due to the financial performance of the discontinued operations in the current year. HEPS from continuing operations were up 16% to 52.9c per share.

"We set out to transform our business, and I am pleased with our disciplined execution, consistent delivery over time, capacity building and progress towards our ambition as a group, "said Dawie de Villiers.

"Alexforbes turns 90 in 2025, and I look forward to making the year ahead truly memorable as we continue to serve our purpose by positively impacting all stakeholders."

Alexforbes' discontinued operations continued to generate a profit but negatively impacted profit growth. The company's total profit for the year fell by 3% to R692 million from R714 million the year prior.

During the period, the company sold its AF Life business to Sanlam Life, reducing its insurance contract liabilities to zero from R191 million the year prior.

Due to the group's performance, its board declared a gross final cash dividend of 30 cents per share for the year ended 31 March 2024, resulting in a 19% increase in the annual dividend. 

In addition, the board has declared a gross special cash dividend of 60 cents per share, distributing a further R778 million in available cash to shareholders and reducing the group's surplus capital position. 

"The group's strong cash performance and its desire to improve capital efficiencies are the basis for the board's decision to declare this special dividend," it said.