JSE-listed financial services group Alexforbes on Monday reported a 19% rise in headline earnings per share (Heps) to 37.2 cents from continuing operations for the year ended March 31 2022, supported by steady growth in new business.
The group saw a year-on-year rise in operating income of 7% to R3.2 billion which it says was underpinned by “new business wins, higher average assets and market performance.”
The better financial performance saw Alexforbes more than doubling its final dividend, to 20c a share. This took its total dividend for FY2022 to 32c a share, up 45% compared to its prior financial year.
Its share price was buoyed by the performance on Monday, trading more than 6% up in morning trade.
According to the group, new business wins amounted to R148 million in annualised revenue.
Further characterising what Alexforbes describes as a “productive year” is the 8% growth in assets under administration (AuA) and assets under managements (AuM) to R435 billion in the period.
The group says new business asset flows for its individual consulting business were up 23% to R11.6 billion, while it registered R9.4 billion in new institutional business AuM, with a further R4 billion awaiting regulatory approval.
“Alexforbes’s results reflect the hard work of the team over the past three years in implementing our turnaround strategy,” CEO Dawie de Villiers says in a statement.
“Our leaders have driven disciplined execution across the business and have cemented the positioning of our advice-led, integrated value proposition resulting in record levels of new business flows in consecutive years,” he adds.
The group says it has set it sights on continuing to drive growth in various parts of its business, including its retail financial advice segment, where it plans to diversify the segment beyond its traditional post retirement market.
“We aim to extend our reach into the pre-retirement lifestage (ages 50 and upwards) to assist with holistic financial planning and consolidation of assets,” it notes in a statement.
“Furthermore, we wish to connect with younger retail customers within our base by scaling up our financial consultants division to reach more individuals aged 30 to 50 and support them with a holistic range of financial planning capabilities with a focus on discretionary investments,” adds Alexforbes.
Seemingly confident about the group’s current growth trajectory, Alexforbes has decided to reaffirm its targets for the next four year, aiming at a cost-to-income ratio of 70% and a return on equity of 14.5%.
“We are building on this strong foundation by refreshing our vision to become the most impactful provider of financial advice to institutional clients and individual customers,” de Villiers says.