AEEI shares leap 8%, with heps up 120%
Net asset value growth doubles
DESPITE ongoing global economic volatility, African Equity Empowerment Investments (AEEI) achieved strong earnings in the year to August with its revenue up 43 percent.
AEEI share price leapt 8 percent to close at R5.40 on the JSE yesterday.
AEEI’s revenue increased by 43 percent from R736m to R1 052m, while net cash generated from operating activities increased to R80m.
Key highlights of the group include its 136 percent profit before tax increase from R288m to R681m, headline earnings per share (heps) growth of 120 percent from 43.13c to 94.89c cents, operating profit improvement of 111 percent from R310m to R655m, net asset value growth of 100 percent from R1 billion to R2bn and a 65 percent increase in total assets from R1.7bn to R2.8bn.
Khalid Abdulla, the group chief executive of AEEI, said in Cape Town yesterday that the group remained on a positive trajectory and was delighted it was able to continue improving its financial performance year on year, while also driving sustainable returns for all stakeholders.
“We have been fortunate to meet and, in most instances, exceed our targets for the year under review.”
Abdulla said the group successfully listed Premier Fishing and Brands separately on the main board of the Johannesburg Stock Exchange (JSE) during the year and the subsidiary raised R526 million in capital through the issue of new shares on the listing date.
He said the capital raised would be used for expansion of the subsidiary’s abalone farm to increase production from 100 tons to 300 tons over the next few years and accelerate its growth strategy through acquisitions and further organic growth.
Abdulla added that during the year, the group obtained significant influence of British Telecoms SA (BT) and was now reported under the technology group and had also acquired two subsidiaries.
This includes Headset Solutions, a unified communications products and services firm, and Puleng Technologies, a firm specialising in risk governance services and infrastructure.
He said there was also a strategic name change from Sekunjalo Technology Solutions Limited to AYO Technologies in preparation for a proposed listing.
The AYO Technology Solutions group was an ICT group offering many end-to-end solutions to a host of industries.
Abdulla said AYO Technologies delivered excellent growth in line with its strategy by increasing revenue by 182 percent from R168m to R476m and operating profit by 142 percent from R256m to R619m.
The significant growth in AYO Technologies was in line with its preparation for the separate listing on the JSE’s main board in the short term.
Abdulla said the group’s health and beauty sector increased its revenue and profits by 247 percent through its expanded footprint and acquisitions.
During the year, AEEI acquired 90 percent equity in Orleans, the exclusive South African and southern African distributors of imported, highend cosmetics brand such as Gatineau, NUXE, RVB SKINLAB/diego dalla palma professional and Sothys.
The group’s events and tourism sector delivered revenue of R118m, with espAfrika, organisers of the popular Cape Town International Jazz Festival, hosting the 18th festival earlier this year and its second Royal Escape Experience at Sun City in July. Magic 828 radio station celebrated its second anniversary and increased listenership by 155 percent across the greater Western Cape region during the year from 134 000 to 342 000 listeners.
Tripos Travel, the group’s travel and tourism sector acquisition, continued to increase its market share in the sector.
The group also has minority stakes in Saab, Sygnia and Pioneer foods.