Alexforbes transformation shows positive signs – announces special dividend

Financial services company Alexforbes released its results for the year through March 2024 today, revealing a strong performance.

Alexforbes reported a 12% increase in fee and commission revenue from its continuing operations to R5.06 billion.

Operating income net of direct expenses also grew by around 12% to R3.91 billion, up from R3.48 billion the year prior.

Operating profit remained flat, but profit from continuing operations grew by almost 5%. Basic earnings per share grew for continuing operations, up almost 4% to 45.6 cents per share.

Headline earnings per share from total operations is up 29% to 61.5 cents per share, and total closing assets under management and administration increased by 16% to R525 billion. 

Growth across various metrics resulted from the execution of its strategy, new business wins, and acquisition implementation, reflecting the current year’s positive market performance.

In addition, Alexforbes’s flagship portfolio, Performer, has delivered consistent and competitive performance. Performer’s closing assets under management increased 12% year-on-year to R232 billion as of 31 March 2024. 

Performer consistently ranks in the first quartile of the Alexforbes Manager Watch Survey over a five-year period and remains well positioned in these volatile markets to continue to achieve superior returns on a risk-adjusted basis.

CEO Dawie de Villiers said, “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.” 

“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.