Alexander Forbes ups interim dividend after strong results

Alexander Forbes (Alexforbes) reported strong results for the first half of the 2023/24 financial year and upped its interim dividend by over 30%.

Alexforbes released its results for the six months ended 30 September 2023, which revealed a robust performance from the company.

Operating income grew by 13% to R1.91 billion from R1.69 billion in 2022 as the company benefited from acquisitions, high levels of client retention and higher average asset balances.

However, operating expenses grew by 15% to R1.56 billion, which includes the operating expenses from acquisitions that have been fully consolidated. 

Basic earnings per share from continuing operations grew by 68% to 27 cents per share, and headline earnings per share also grew by 68% to 27 cents.

This saw the company’s profit for the period from continuing operations grow by 66% to R339 million.

The company attributes this growth to the trading performance of the continuing operations, the increase in other income earned on interim support services provided to businesses disposed, lower amortisation of intangible assets, an improved result from its professional indemnity insurance cell, and an increase in investment income.

Alexforbes’ total closing assets at the end of the period was R455 billion – a 10% increase from the year prior.

The company’s total members grew by 14% to 1.53 million.

These results follow a significant half-year for the company, as it made two acquisitions in the period.

In June, the company acquired a majority interest in TSA Administration, an independent provider of institutional group risk insurance administration services.

In November, the company entered into a binding agreement with OUTsurance Holdings Limited to purchase 100% of the shares in OUTvest Proprietary Limited. 

OUTvest is a digital wealth platform launched in 2017 and was built to enable the distribution of a range of wealth products. 

“The transaction will take effect once all conditions precedent have been fulfilled, including regulatory approvals,” the company said. 

“We expect completion by March 2024, with integration of the platform and people into our environment following thereafter.”

Alexforbes declared an interim dividend of 20 cents per share – up 33% from 2022.