Johannesburg - Financial services provider Vunani has managed to turn its fortunes around, reporting a R8.6 million profit for the year to December against a backdrop loss of R25.3m reported in the corresponding period the previous year.
The group’s revenue shot up 14.26 percent to R131.4m, up from R115m revenue the previous year, and basic earnings a share increased to 5.9c, improving from last period’s loss of 22.5c.
Vunani chief executive Ethan Dube said the company had returned to a sound footing and he was determined to build a strong financial group in the future.
The chief executive said the group’s acquisition of a 70 percent stake in Fairheads International Holdings for R210m last year could prove a masterstroke in the long run as it allowed Vunani to enter into a new market and to diversity its service offering within the financial services sector.
“Our focus remains on building a strong diversified financial services group,” Dube said. “The acquisition of Fairheads was a major achievement during the period. It is complementary to, and underpins all our existing offerings and strengthens our asset administration capabilities within the group.”
“The results were pleasing and we feel that there has been good progress by all the underlying businesses,” he said.
Dube said the Fairheads-structured transaction allowed Vunani management to take a 30 percent stake as part of the acquisition.
Last year, the company blamed load shedding, a poor summer crop season, as well as the meltdown in the prices of global commodities for the slump in consumer and business confidence.
In the six months to June, the company said these factors led to less investments.
Dube said some of Vunani’s businesses were vulnerable to both local and global trading conditions.
But he said the company remained optimistic about its future operations.
“Despite volatile market conditions, we have entered a new phase and we are now better positioned for growth. There was an impact on the business as some of our businesses are linked to the overall market performance (securities trading and asset management),” he said.
Dube said the company had also introduced a conditional employee share incentive to retain some of the company’s best talent.
Vunani’s share price was unchanged at R1.60 a share at the close of trade yesterday on the stock exchange.
BUSINESS REPORT