JOHANNESBURG – African Bank Investments Limited (Abil), which last month emerged from a nearly 12-month business rescue process, has posted net profit after tax of R443 million for the six months to March 2016.
The company’s only trading subsidiary, insurance company Stangen, generated these profits exclusively, Abil said in a statement on Thursday evening.
Earnings and headline earnings per share were 29.5 cents per share for the six-month period.
Total shareholder equity amounted to R1.6 billion at March 31.
“The resultant solvency and liquidity ratios confirm the financial stability of the Group,” the statement said.
Total cash and cash equivalents came to R1.9 billion.
Following the successful payment of its creditors – to the tune of R1 billion – Abil has cash reserves of R250 million.
“As a result of the successful business rescue process the company is no longer distressed and can continue to operate as a going concern,” former business rescue practitioners (BRP), John Evans and Dawie van der Merwe recently told Moneyweb.
Abil was placed into business rescue in June 2015 following the failure of its subsidiary, Ellerine Furnishers to repay loans to large South African banks for which Abil was the guarantor.
The BRPs will continue to manage Abil’s assets on behalf of its board.
The current Board will convene an annual general meeting at which new directors will be proposed and voted on by shareholders, the statement said.