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Subheadings were inserted by Turnaround Talk.
Alexforbes lifted the annual dividend by 45 percent to 32 cents per share after the financial services company continued to make progress on its turnaround strategy, CEO Dawie de Villiers said in a press briefing regarding the company’s turnaround strategy.
Operating income increased 7 percent to R3.2 billion in the year to March 31, underpinned by substantial success in attracting new clients across all business segments coupled with strong investment performance, he said.
HEPS grew 19%
Headline earnings per share from continuing operations grew 19% to 37.2 cents. A final dividend 20 cents per share was declared.
“Our leaders have driven disciplined execution across the business and have cemented the positioning of our advice-led, integrated value proposition resulting in substantial levels of new business flows in consecutive years,” he said.
The strategy set out in 2019 proved to be resilient to the impact of the Covid-19 pandemic and it created the foundation for accelerated growth, he said.
He said the board and management were excited by the interest expressed in the business by the largest insurer in the US, Prudential Financial, through the potential change in shareholding transaction announced in March this year.
Prudential chairman Charles Lowrey said at the release of their first quarter results that the acquisition of a minority stake in Alexforbes was to enhance Prudential’s emerging market strategy. Prudential delivered “solid operating earnings … including strong variable investment income that more than offset the impact of elevated Covid-19 mortality.”
De Villiers said Alexforbes’ customer satisfaction score had improved for a third consecutive year.
New business is driving the strategy
New business represented an estimated R148 million in annualised revenue.
New business asset flows of R11.6bn were achieved in the individual consulting business, up 23 percent year on year.
There had been R9.4bn in new institutional business assets under management (AuM), with R4bn more pending regulatory approvals. Significant administration mandates were won, with membership within client funds ranging from 7 000 to 60 000 members per fund, he said.
There had also been notable wins in both the healthcare broking and healthcare management solutions businesses.
Photo By: Alexforbes
Digital transformation continues
The digital transformation continued, as well as member engagement and the individualisation strategy, in line with the group’s growth ambitions.
It completed the sale and transfer of the group risk and retail life businesses to Sanlam Life.
The group announced three other corporate transactions in line with its growth strategy.
It launched a refreshed vision, customer value proposition and brand. It improved the utilisation of digital tools. Also, the Alexforbes Member Insights research was delivered, now augmented by non-retirement fund data.
“The business is now in a strong position to forge a greater connection with the people who we ultimately serve resulting in a refreshed purpose and overarching customer value proposition which is to pioneer insight to deliver advice and solutions that impact people’s lives,” said De Villiers.
The share price increased 3.66 percent to R4.25 on the JSE yesterday morning.
“The core business has been reconfigured, is focused, and working well,” said De Villiers.
