DURBAN – MMI’S share price slid after it reported a disappointing set of results for the year to end June, as it continues its efforts to turn the financial services group around. 

The results followed a financial year in which the MMI Holdings board initiated turnaround changes, including appointing new executive leaders and tasking them with positioning the business for improved performance and future growth.

The share closed 2.49 percent lower at R16.85 on the JSE yesterday.

MMI reported a 12 percent decline in diluted core headline earnings to R2.8 billion, after being affected by factors such as increased investment in strategic initiatives, higher expenditure on distribution and weaker persistency in Metropolitan Retail. 

Diluted headline earnings per share declined 21.39 percent to 93 cents a share, down from 118.3c compared to last year. 

Operating profit after new initiatives declined by 10 percent to R2.35bn. 

The board did not declare a dividend.

Chief executive Hillie Meyer said the company knew that it had reported disappointing results. 

“In spite of the strategic reset and the senior management changes, we now have a more stable environment and I have no doubt that we can turn MMI around,” Meyer said. 

The group said to turn the business around, the leadership team was focusing on a strategy comprising two components, which they termed Reset and Grow. 

He added other basic improvements included that MMI changed its operating model to empower end-to-end business units to run their businesses efficiently and effectively, an increased focus on successfully growing the core businesses in South Africa.

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- BUSINESS REPORT