AlexForbes FY HEPS climbs 16%

Financial services provider Alex Forbes has reported a significant 16 per cent increase in its full-year headline earnings per share from continuing operations. The company has also declared a special dividend of 60 cents per share, showcasing its strong financial performance despite the challenging economic environment. CEO Dawie de Villiers credits the positive results to strategic investments and the successful acquisition of six businesses over the past three years. The company's operating income has risen by 12%, with headline earnings showing a considerable uptick. De Villiers remains optimistic about the sustainability of this growth, emphasizing the firm's ability to generate solid revenue and dividends for shareholders in the future. The recent implementation of the two-port retirement system in South Africa, allowing workers access to their retirement benefits without cashing out of the entire pension fund, has raised some concerns about liquidity in the insurance industry. However, De Villiers welcomes the new legislation, noting its positive impact on South Africans' ability to save for retirement effectively. He anticipates a minimal impact on asset management liquidity, with most funds well-equipped to manage the anticipated withdrawals. De Villiers also highlights the successful launch of the discretionary fund management initiative, attracting brokers and individual investors to leverage Alex Forbes' expertise and platform. The company's cash position, which stood at close to a billion rand, has been partially allocated to dividends, with plans for future acquisitions and strategic growth through leveraging the balance sheet. As Alex Forbes approaches its 90th anniversary in 2025, De Villiers looks forward to continued success and expansion, signaling a robust outlook for the company's future prospects.