South African financial services group Alexander Forbes on Monday reported a 16% decline in headline earnings per share to 113 cents for the year ended March 31, from 135 cents a year ago. Excluding non-recurring restructuring costs, headline earnings per share were 132 cents, down 2% from 135 cents a year earlier.
The final distribution was maintained at 67 cents.
The I-Net Bridge consensus forecast of two analysts was for headline earnings per share of 123,5 cents and a distribution of 67 cents.
Total revenue was up 4% to R4,6-billion, while net profit for the year was little changed at R438-million from R439-million a year ago.
Operating profits before non-recurring restructuring costs increased by 1% to R790-million, having been impacted by the reduced profit contribution from International Risk Services and Direct Marketing.
Operating profit attributable to all of the other group operations increased 24%, compared with the previous year.
The group said features of the year were strong operating results from its African businesses, significant growth in its International Financial Services businesses and continued strong growth in the assets of Investment Solutions, with global assets under management increasing by 31% to exceed R87-billion by March 31 this year.
Focused action was taken following a review of its International Risk Services business, and Alexander Forbes has also significantly strengthened its financial position since the previous financial year-end, having settled R1,5-billion of offshore borrowings and exchangeable bond debt combined with the R1,159-billion equity issue to Venfin.
Looking ahead, the group said its African businesses continue to deliver organic growth. At the same time, significant progress has been made in the transformation of these businesses and extending its footprint in Africa.
Its empowerment partners, headed by Shanduka, continue to play an important role in the development and internal transformation of the South African businesses.
The review of the International Risk Services business has placed the business in a stronger position from which to achieve future growth. While trading conditions remain challenging in the short term, there are opportunities arising from changes in the global insurance broking industry.
The International Financial Services and Investment Solutions businesses are well placed to build on the successes of the past year.
“The group is well positioned to achieve growth in the year ahead,” it concluded. — I-Net Bridge