The Johannesburg Stock Exchange in Sandton City. File picture: Timothy Bernard
The Johannesburg Stock Exchange in Sandton City. File picture: Timothy Bernard
JOHANNESBURG - African Phoenix Investments on Friday reported a 62.12% decline in headline earnings a share for the year to end September, with management changes on the cards.

Its earnings a share came in at 13cents from 34cents in 2016.

The group reported a profit of R186million during the year, a huge decline from the R491m reported last year. The group is still trying to find its footing again after one of its subsidiaries, Ellerine Furnishers, went in to business rescue last year.

African Phoenix was known as African Bank Investments before but it was changed in February. The group owns 100percent of Standard General Insurance Company (Stangen) as its only trading subsidiary.

The group said the trading profits were mainly generated by Stangen, but also included recognition of the fair value of the Residual Debt Services Senior Stub Notes amounting to R48m and recoveries from Ellerine Furnishers of R45m in respect of fully impaired claims against Ellerine Furnishers.

Even though the profits took a knock, the group’s total income was up by 25.5percent to R251m - from R200, while its headline earnings a share from continuing operations improved to 13.7cents a share, turning around a loss of 6.5c compared with last year.

No dividend

The group did not declare a dividend during the year.

In the year ahead and in the process of pursuing its goal of creating long-term value, the group said it aimed to appoint a management team with demonstrable skills in deploying capital, generating shareholder value and ability to utilise its structuring opportunity.

The group said total shareholder’s equity at the end of September was R1.83billion - up from R1.64bn reported a year earlier, adding that it remained solvent and liquid and had cash reserves of R1.88bn.

Stangen invested in a 15 percent equity stake in Different Life for a cash consideration of R20m. However, the group said a further issuance of shares by Different Life, as anticipated at the time of investing, diluted the company’s effective holding to 13percent.

- BUSINESS REPORT