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Alexander Forbes sees decline in FY earnings
Alexander Forbes is reporting a 1 per cent drop in headline earnings per share, down to 44 cents for the year ended 31 March 2019. The final dividend for the year came in at 30 cents per share. Dawie de Villiers, Group CEO, Alexander Forbes joins CNBC Africa for more.
Tue, 18 Jun 2019 15:29:41 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The decline in headline earnings per share at Alexander Forbes was attributed to poor market performance and challenges in the assets under management sector.
- The company faces stiff competition in the financial services industry, particularly in asset management and savings, requiring a focus on differentiation and client retention.
- The interview highlighted the importance of addressing leadership changes, optimizing costs, and prioritizing revenue growth to navigate the current economic environment and drive long-term success.
Alexander Forbes, a leading financial services company, has recently reported a 1% drop in headline earnings per share for the year ended March 31, 2019. The final dividend for the year was 30 cents per share. Dawie de Villiers, the Group CEO of Alexander Forbes, sat down for an exclusive interview with CNBC Africa to discuss the company's performance and the challenges it has been facing. De Villiers admitted that it has been a tough year for the company, attributing the decline in earnings to the poor performance of the markets, especially in the assets under management sector. The CEO highlighted that a significant portion of the company's revenue comes from assets under management, and with the markets underperforming, it has had a direct impact on the bottom line. The tough economic environment has also led to challenges in retaining clients and managing costs. De Villiers mentioned that the competition in the industry is fierce, with many new players entering the market, particularly in asset management and savings. This has put pressure on companies like Alexander Forbes to differentiate themselves and maintain their client base. The interview also touched upon the leadership changes within Alexander Forbes, with three CEOs exiting the company in a short period. De Villiers acknowledged the uncertainty that such changes can bring and emphasized the importance of bringing back consistency to the organization. He outlined the need to focus on growing revenue and optimizing costs to address the challenges facing the company. De Villiers highlighted the importance of not compromising on key assets, such as staff, when implementing cost-cutting measures. He noted that while cost efficiencies are necessary, cutting essential resources like personnel could have a detrimental impact on client engagement and overall performance. Looking ahead, De Villiers shared his vision for the future of Alexander Forbes, highlighting plans to restructure the business and focus on delivering value to clients. He emphasized the company's commitment to simplifying its operations and creating a more efficient and client-centric organization. Overall, the interview provided valuable insights into the current state of Alexander Forbes and the strategic direction the company is heading under De Villiers' leadership.
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