South African financial-services company Peregrine Holdings on Wednesday reported headline earnings per share of 37,9 cents for the six months ended September 30, from a restated 17 cents a year ago. The previous year’s figures were restated as the group has adopted International Financial Reporting Standards for the year ending March 2006.
The company said that favourable market conditions, combined with strong organic growth, resulted in significantly increased contributions from all of the group’s businesses. Particularly significant was the progress made in further expanding the group’s hedge-fund related activities.
Revenue was up by 63% to R261,7-million, boosted by buoyant markets and increased performance fees.
Continued strong cash generation within the group and substantial growth in the group’s hedge-fund-related prime-broking operations resulted in net interest of R25,4-million being earned for the period, compared with R2,1-million in the previous period.
A capital profit of R26,9-million was earned principally from the receipt of proceeds arising from the sale of a non-core group subsidiary during 2003.
Notwithstanding a full rate of taxation and an increase in minority interest, earnings attributable to equity holders increased by 185% to R100,4-million, and with a lower number of shares in issue due to share re-purchases over the past year, earnings per share increased by 192% to 51,9 cents per share.
Looking ahead, Peregrine said under the favourable market circumstances experienced in the first half of this financial year, it has been able to produce the most profitable six-month period in its history.
In the short term, a maintained level of profitability for the balance of the financial year would require equally favourable conditions to prevail.
“Over the longer term, we remain confident that the group’s positioning in the niche areas of private wealth management, hedge-fund management and trading will continue to provide Peregrine with a platform for meaningful growth in earnings over time,” it said.
Peregrine added that the structure and pricing of its black economic empowerment transaction are in the process of being finalised and shareholders are advised to exercise caution when dealing in their shares until an announcement is made during November. — I-Net Bridge