Strategic Clarity and Disciplined Execution Pay dividends
11 Jun, 2024

 

Dawie de Villiers, CEO, Alexforbes

 

Alexforbes has reported solid financial performance delivering strong revenue growth in an uncertain economic environment, reporting a 12% increase in operating income to R3 905 million for the twelve months ended 31 March 2024. 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. The growth across various metrics is a result of the deliberate execution of the group’s strategy, new business wins, the implementation of acquisitions and reflects the positive market performance in the current year.

 

Alexforbes’s flagship portfolio, Performer, has delivered consistent and competitive performance over time, resulting in improved long-term investment outcomes for clients. Performer’s closing assets under management increased 12% year-on-year to R232 billion as at 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.

 

Chief executive officer, Dawie de Villiers, commented: ‘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 am looking forward to making the year ahead truly memorable as we continue to serve our purpose by making a positive impact for all stakeholders.’

 

As a result of the group’s performance, the board has 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 surplus capital position of the group. The group’s strong cash performance and its desire to improve capital efficiencies is the basis for the board’s decision to declare this special dividend.

 

Implementation of the two-pot retirement system

 

Alexforbes has been gearing itself towards the implementation of the two-pot retirement system that directly impacts its administration system capabilities, digital suite and engagement with members on an unprecedented scale. The company regards this as an opportunity to connect with, engage and educate members about their options and the long-term value of their retirement fund investments. In doing so, Alexforbes believes that it can build relationships with members that will ultimately result in the opportunity to provide the best advice.

 

Alexforbes Impact Advisory

 

The company has launched the Alexforbes Impact Advisory to extend its expertise to deliver environmental, social and governance and sustainability-focused advice to retirement funds and corporates in South Africa. This service is facilitated through the Alexforbes Impact Centre of Excellence, comprised of sustainability specialists supported by strategic partners to provide clients with insights, practical advice and solutions. The offering also includes access to the Alexforbes Impact Academy, which provides related training to stakeholders.

 

Scanning the field

 

Alexforbes continues to evaluate and assess acquisitive growth opportunities that would enhance its advice-led value proposition and strengthen its core business lines.

 

ENDS

Author

@Dawie de Villiers, Alexforbes
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