Investec’s profits miss forecasts

190309 Investec CEO Stephen Koseff speaking at their pre resultsl presentation at their offices in Sandton.photo by Simphiwe Mbokazi 33

190309 Investec CEO Stephen Koseff speaking at their pre resultsl presentation at their offices in Sandton.photo by Simphiwe Mbokazi 33

Published May 22, 2014

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Johannesburg - Investec, the owner of a money manager in Britain and South Africa, posted full-year profit that missed analyst estimates, hurt by the rand’s 20 percent depreciation against the pound.

Earnings-per-share excluding one-time items rose 9 percent to 33.9 pence in the 12 months through March, missing the 36 pence median estimate of eight analysts surveyed by Bloomberg, according to a statement today.

Investec said it’s considering a sale of its Kensington mortgage business, which it bought for 283 million pounds in 2007, just before the financial crisis.

The company is also selling a division in Australia that lends money to professionals such as doctors, lawyers and dentists.

“The significant restructuring effort that has taken place over the past year, together with the strategic initiatives currently under way, should enable Investec to benefit from the upturn in global economic conditions and generate appropriate returns,” the company said today.

Investec has climbed 17 percent in London trading this year, outperforming the FTSE 250 Index’s 2 percent decline.

Net income climbed to 331.6 million pounds from 310.1 million pounds in the year-earlier period, the company said. - Bloomberg News

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