Vunani chief executive Ethan Dube. File picture: Simphiwe Mbokazi
Durban - Black-owned financial services group Vunani says it wants to build its business organically and through acquisitions to position itself as a top financial services firm of the future.

The company says it will prioritise new ventures in South Africa and abroad as it grows its footprint.

Vunani chief executive Ethan Dube said they would be on the lookout for acquisitions that would fit in with the company in the year ahead.

The company said it had increased its investment in Fairheads International Holdings from 62.5 percent to 92.5 percent during the year end to February.

Vunani holds the Fairheads stake through its subsidiary Mandlalux.

Agreement

It said the acquisitions had continued past the reporting period, with the group having entered into an agreement in which it acquired 15 percent of the ordinary share capital of PowerHouse Africa Holdings for R2 million in April.

“We are continuously looking for opportunities to grow the business and enhance shareholder value,” Dube said.

“Focus on the operating businesses is a key strategy to solidify the group as a formidable financial services player and ultimately ensure the long-term success of Vunani.

"We are positive about the growth that was achieved in the current year and expect the momentum created to be maintained into the immediate future,” Dube concluded.

The group presented excellent results for the period, including an increase of more than 387.80 percent in profit after tax to R40 million, up from R8.2 million for 14 months to the end of February 2016.

Revenue increased by 22 percent to R188.6 million, up from R154.2 million in 2016.

Read also: Vunani: Golding buys 20% stake for R48m

Headline earnings per share improved to 19.2 cents a share, up from 5.8c, while basic earnings per share was higher at 30.1c as compared to 6.2c reported in 2016.

The group declared a dividend of 5.2c per share.

Vunani changed its reporting period from December to February to accommodate the acquisition of Fairheads, which had a February year-end.

“I am extremely pleased with these great results which are primarily due to improved performance from all our business units.

"The successful integration of Fairheads and the streamlining of internal systems and efficiencies means that we have now laid the foundation for sustainable future growth,” said Dube.

The group operates five segments: fund management, asset administration, investment banking, private equity and private wealth and investments.

Dube said the group would continue to look for opportunities to further grow the business and enhance shareholder value.

“The focus on the operating businesses is a key strategy to solidify the group as a formidable financial services player and ultimately ensure the long-term success of Vunani.

"Vunani is positive about the growth that it has seen in the current year and expects that the momentum created can be maintained into the immediate future,” the group said.

The company's shares closed flat on the JSE at R2.30 on Wednesday.

BUSINESS REPORT