JSE-listed group Vunani's share price slid by more than 21percent yesterday. File Photo: IOL
JOHANNESBURG - JSE-listed group Vunani's share price slid by more than 21percent yesterday despite the financial services group reporting a 98percent increase in profits for the year to end February.

The share price closed 21.26 percent lower at R2.

The group reported a profit of R90.3million, up from R45.6m compared to last year, mainly driven by improved performance of the majority of the group’s operating businesses and growth in value of its assets.

Chief executive Ethan Dube said: “The sustained performance for the past twelve months is reassuring of our improving synergies across our operating businesses.

"Despite market headwinds and the unfavourable exchange rate we have managed to deliver growth that further enhances value for our shareholders.

“Vunani is well poised to take advantage of the continued recovery in business and consumer confidence to further grow its business,” Dube said.

The group reported a 21percent increase in revenue to R425.3m, up from R350.9m while earnings per share increased to 54.7cents a share, up from last year’s 26c.

The group declared a gross ordinary dividend of 7.4c a share, up from 6.2c compared to last year.

Going forward the board believes that the group is positioned to take advantage of the continued recovery in business and consumer confidence to further grow the business and enhance shareholder value.

“For the group to grow significantly, it will target acquisitions that will complement the existing businesses.”

It said it was cautiously optimistic the performance of the last year can be maintained and it could fuel growth in the immediate and long-term future.

The group has different segments of reporting, which include the fund management, asset administration, advisory services, institutional securities broking and private equity.

The fund management segment reported revenue of R87.2m, up from R64.7m, while the profit increased to R7.9m compared to R4.3m reported last year.

BUSINESS REPORT