Peregrine reaps benefits of offshore operations
DURBAN – Specialist financial services group Peregrine reaped the rewards of its diversification strategy with offshore operations contributing 56 percent of the group’s earnings for the six months to end September.
Last year the offshore operations contributed 38 percent of the group’s earnings.
Chief executive Robert Katz said yesterday the emerging markets had a volatile time during the period as investors sought better returns in safe haven assets and geographies.
“The currencies of several emerging markets depreciated against the US dollar, with the South African rand among the worst affected.
“Despite the difficult trading environment, the operating businesses of the Peregrine Group increased segmental earnings to R283 million from continuing operations,” Katz said.
The Broking & Structuring business, which is in the process of being sold, delivered a 31 percent growth in earnings.
The group is expecting an approval from the Competition Commission for the disposal of the Broking & Structuring business before the end of the 2018 calender year.
In the results, headline earnings increased by 4 percent to R283m, up from R272m.
Headline earnings per share (Heps) increased by 4 percent to 131.4 cents a share, up from 126c compared to last year.
They declared a maiden interim cash dividend of 85c a share during the period.
Total operating revenue, which includes the ad hoc performance fee, grew by 2 percent to R789m.
The group’s wealth manager, Citadel, reported a 21 percent increase in headline earnings to R114m and 8 percent increase in revenue to R461m.