Alexforbes said it expects its profits to jump when it reports its full-year financial results in June.
The retirement fund administrator said in a statement on Tuesday that headline earnings per share (HEPS) for its total operations are expected to rise 42%-47% to between 47.1c and 48.8c for the 12 months to end-March 2023. HEPS is a profit measure that strips out once off items.
HEPS from continuing operations are expected to rise 20%-25% to between 44.6c and 46.5c, according to the statement posted on the stock exchange news service (Sens). Alexforbes said its earnings had been positively influenced by the improved financial performance of discontinued operations and the profit realised on the sale of the group’s individual client administration business to Sanlam Life Insurance, which was announced on March 1.
As a result of that sale, the group realised a profit of R153m, though HEPS for the period under review excludes this amount. Even so, the group still accounted for the operating profits from discontinued operations for the 11 months before the disposal of the business unit.
“The group is expected to deliver pleasing growth for the current year from continuing operations with profit from operations before non-trading and capital items expected to increase between 7% and 12% compared to the R720m reported in the prior year,” Alexforbes said. “The expected increase reflects sustained revenue growth across core business lines despite macroeconomic headwinds that dampened asset-based revenue for the year, demonstrating the value of a diversified income stream. This growth in revenue is a result of the deliberate implementation of our strategy, the positive impact of new business wins, with important transactions and acquisitions having been concluded during the year.”
Alexforbes is scheduled to release its results for the year to end-March on June 12.
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