VUNANI, the listed black-owned asset management company, saw profit from continuing operations rocket 257 percent to R71.7 million in the year to February 28 and the final dividend almost doubled to 14 cents from 7.5c.
Revenue and premiums from continuing operations increased 17 percent to R687m. Headline earnings per share increased very sharply to 34.7c from 7.2c in 2021.
“The unbundling of the private equity assets last year enabled focused growth of the financial services businesses. We remain cautiously optimistic that we can sustain organic growth over the medium to long term and that new opportunities will be evaluated on their own merits to ensure value-accretion and good strategic fit,” chief executive Butana Khoza said yesterday at the release of the results.
The group’s reporting segments include fund management, asset administration, insurance and investment banking. Some fund management and the private equity business formed the discontinued operations, following the unbundling of this segment and its separate listing on the independent, black-owned stock exchange, Equity Express Securities Exchange.
Khoza said the rise in profit was due to improved performance of the insurance business, which was negatively impacted by Covid-19 in the prior year, and a better performance of the fund management businesses.
Vunani generated total comprehensive income for the year of R71.4m compared with a negative R5.3m in 2021. Total comprehensive income attributable to equity holders was well up at R60.6m from R17.2m.
The group said on its website that the invasion of Ukraine by Russian forces would likely result in lower global growth if the war continued for a significant period, and this might affect the performance of the fund going forward.
“The group continues to see numerous opportunities in the market,” it said.
Of the continuing operations, the fund management segment reported revenue of R180.7m (R133.6m) for the period.
The insurance segment made a R11.8m profit (R37.3m loss). There was an impairment reversal of the value in-force intangible assets of R10.3m in the segment, compared to impairment loss of R41.5m in 2021.
Advisory services reported a R1.2m (R5.6m) profit. Institutional securities broking made a R1.4m (R14.2 m) profit.
Business Report