Sygnia shares hit a 52-week high on robust results

Group declares interim dividend of 80 cents per share.
Magda Wierzycka, founder of JSE-listed Sygnia, which closed almost 4% up at R19 a share on the bourse on Tuesday. Image: Supplied

The share price of specialist financial services and asset management group Sygnia Limited hit a 52-week high on the JSE on Tuesday, after it reported a 31.5% surge in half-year profit and a robust financial performance in terms of other key metrics.

Sygnia closed almost 4% up at R19 a share, after touching an intraday high R19.50.

The group’s revenue for the six months ending March 31 2022 was 13.4% up, at R397.4 million, compared to its corresponding period. This contributed to profit after tax of R139.1 million (H1 2021: R105.8 million).

Sygnia noted in its Sens short-form results announcement that headline earnings per share for the half-year came in at 92.6 cents (H1 2021: 74.8c), up 23.8%.

Read: Sygnia performs despite ‘turbulent’ economic environment

It reported diluted headline earnings per share of 89.9c (H1 2021: 72.8 cents), up 23.5%.

Sygnia said assets under management (AuM) and administration totalled R295.3 billion at the end of the half-year, up 6.1% compared to its HY2021 (R278.3 billion).

The Cape Town-headquartered group declared an interim dividend per share of 80c. This is 25c a share higher than its corresponding prior half-year (55c).

“A gross dividend of 80 cents per share has been declared on 6 June 2022 out of retained income, resulting in a net dividend of 64 cents per share for shareholders after dividends tax,” it said.

Record results 

Commenting in further detail in its consolidated financial statement for the half-year, Sygnia directors noted: “Notwithstanding the challenging economic backdrop, the group delivered record half-year financial results for the six months to 31 March 2022, accompanied by a substantially higher interim dividend.”

The directors said the group intends to continue delivering durable profits to its shareholders.

“The ongoing success of the group is largely linked to the growth of AuM from a mix of institutional and retail clients, dependent on both market movements and new business flows. Over the six months … revenue linked mostly to AuM increased by 10.6%, to R311.0 million [31 March 2021: R281.1 million], largely reflecting the increase in average AuM,” they added.

“Retail AuM reached R54.1 billon at the end of March 2022 [30 September 2021: R52.1 billion; 31 March 2021: R45.7 billion] on the back of R3.6 billion net inflows. At that time, our ever-growing mix of direct and advice-led retail investors stood at 17 700 and 22 200 respectively, approximately 31% more than the 30 500 retail investors at 31 March 2021,” the directors pointed out.

According to Sygnia, the group is the second-largest provider of exchange-traded funds (ETFs) in South Africa and the largest provider of international ETFs on the JSE.

“The growing popularity of ETFs among both institutional and retail customers is reflected in net inflows of R2.4 billion [31 March 2021: R2 billion] into the Sygnia Itrix range of ETFs,” it said.

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