With cash in hand Vunani holds off on acquisitions
JSE-LISTED and black-owned financial services group Vunani said yesterday that it was not in a hurry to go on an acquisitions spree, but remained on the lookout for the right opportunities.
Chief executive Ethan Dube said: “We would definitely consider the private clients and pension administration portfolio if we had to add new acquisitions. But we just don’t want to acquire for the sake of adding new businesses, but those acquisitions should add value to the Vunani group.”
Although the group had managed to declare a dividend for the year to end February, it had kept some cash in hand in case it was needed to expand the business, he said. Vunani declared a dividend of 6.2 cents a share for the period, up from 5.2c as compared to last year.
“We decided to hold on paying a bigger dividend to our shareholders, but to focus on growing the business for the future. We had to ensure that we have enough liquidity should it be needed for future expansion,” Dube said.
Fairheads, which Vunani acquired in 2015, contributed R124 million to the group’s revenue of R350.9m.
The group’s overall revenue was up by 90 percent for the year, up from last year’s R184.2m, mainly driven by the consolidation of Fairheads’ full-year results and the increased revenue from the mining segment, the group said.
Vunani generated total comprehensive income of R44.4m, up from R37.8m, while total comprehensive income attributable to equity holders of the company amounted to R40.5m, up from R36.8m. Headline earnings per share increased to 25.2c, up from 19.2c a share.
“We are pleased with the performance of the last 12 months and we believe that a continued recovery in business and consumer confidence will have a positive effect on the group’s ability to further grow the business and enhance shareholder value,” Dube said.
For the year ahead the group said it would continue its focus on improving the performance of its operating businesses, as well as improving synergies across the entire platform. Dube added that Namibia and Botswana presented the company with an opportunity for growth in those regions.
Vunani closed unchanged at R2.90 on the JSE yesterday.