Johannesburg - The top JSE listed Black Economic Empowerment Company, African Equity Empowerment Investments Limited (AEEI) formerly Sekunjalo Investments Limited, has reported the Group’s interim financial results for the six months to February as being ahead of forecasts.
The Group’s main objective was to increase its total and net asset value (NAV) by improving the operational performance of its underlying businesses and investments due to the strength of the business fundamentals.
AEEI Group Chief Executive Officer, Khalid Abdulla said, “Through the rigorous implementation of this strategy, a remarkable improvement is already evident within the first six months. The Group generated significantly more cash (R20 million) from its operations compared to the prior period. This performance was a result of improved operational efficiencies”.
All of the Group’s subsidiaries have shown good profit performance and growth as well as an increase in asset value.
Our major operations in marine and IT have shown outstanding performances due to strategies to extract efficient organic growth and synergies within the broader Group.
The Group’s revenue grew by 7% from the prior 2014 as a result of strong operational performances of the underlying businesses. Gross profit percentage of 31% was achieved by improving margins and driving efficiencies throughout the Group’s operations.
The Group’s asset base increased by R286 million to R1 245 million (2014: R959 million), an increase of 30% mainly due to the growth in our operations as well as our strategic investments.
Earnings and headline earnings per share increased by 125% and 188% respectively as a result of the operational performance of the subsidiaries.
Profit before tax for the period increased significantly by R13 million to R46 million compared to the prior period of R33 million, an increase of 30%, driven mainly by the organic growth of the subsidiary companies.
“My executive teams have been intentionally focused on driving the strategy in their operations and we expect a robust and consistent increase in business growth and shareholder value going forward”, said Abdulla.
The Group has previously alluded to acquisitive growth and is well positioned to increase its investments.
In a cautionary notification the Group alerted shareholders that it is in a closed period while negotiations are taking place. If successful, the negotiations will have a positive impact on the company’s asset base.
The performance of the Group’s investments in large multinational companies British Telecom Communication Services, SAAB South Africa and the Pioneer Foods Group have, as indicated, also contributed to the Group’s financial position considerably.
Professor Vukile Mehana, non-executive Chairman of the AEEI Board says, “The performance to date has to be applauded as traditionally the second half of the Group’s performance produces significantly stronger results due to the seasonal nature of some of the businesses”.
Abdulla concludes, “We are very pleased to have exceeded our growth targets during this exciting new phase of the Group’s growth. We are working towards significant growth in the second half of the year and the years to come. This would not have been possible without our people and their continued focus on operating efficiencies and better portfolio management which remain the key drivers of our performance”.
The figures
Group Revenue up by 7%
Operating Profits increased by 36%
Profit Before Taxation up by 40%
Total Assets increased by 30%
Tangible Net Asset value up by 22%
Headline Earnings per share is up 188%
Earnings per share 125%
* About African Equity Empowerment Investments Limited:
African Equity Empowerment Investments Limited (AEEI) was born out of Sekunjalo Investments Limited in 1997. The Organisation listed the entity on the Johannesburg Stock Exchange (JSE) in 1999 and holds strategic investments, some with international partners, as well as investments in marine, technology, health and biotherapeutics, enterprise development, events, tourism and supporting Broad Based Black Economic Empowerment and small to medium and micro enterprises.
AEEI is an exporter and generates a significant portion of income in foreign currency and also has stakes in British Telecommunications South Africa, SAAB SA and the Pioneer Food Group Limited.