Vunani reports strong earnings despite tough economic climate
VUNANI, the black-owned financial services group, brushed aside rand volatility, technical recession and political uncertainty to report strong earnings for the six months to end August.
Basic earnings per share rose by 85 percent to 15.7 cents a share, up from 8.5c compared with last year.
Chief executive Ethan Dube said the results were a reflection of the hard work the group had put into the business over the past few years.
“As a financial services group we are beginning to show good growth in fund management and asset administration businesses. We are pleased with the outstanding improved performance in the first half, despite the tough economic environment in which we operate,” Dube said.
He said the recently announced joint venture between Vunani and AYO Technology Solutions presented further growth opportunities for the group, following the successful integration of Fairheads. “This shows strength and commitment to the company’s strategic objectives,” he said.
Vunani has strategically partnered with AYO with the aim of expanding its existing fintech operations and entering new markets through organic growth and by acquisition. As a result Vunani and AYO announced the formation of a R100 million fintech joint venture to expand the fintech platform and financial services activities of Vunani on Monday.
Vunani acquired Fairheads for R210m in 2015 and the group was looking to add new acquisitions in the next six months. “We are looking to make one or two acquisitions and we want to conclude them in the next six months. Overall the prospects are good for the country, having appointed a new minister of finance. And I believe once the land issue has been done with speed, we will begin to see good growth in the SA economy.”
In the results, revenue from continuing operations increased by 46 percent to R233.7m, up from R160.1m, with the group attributing the growth to the advisory and mining segments, which grew revenue by 390 percent and 167 percent, respectively.
The group generated total comprehensive income of R31.4m, up from R15.8m while total comprehensive income attributable to equity holders of the company amounted to R26.6m compared with R13.1m reported last year. It believes that the improved profitability on the operating businesses is a key strategic indication of its progress as a formidable financial services player and underpins the longterm success of the company.
“The employees are important to the success of these businesses and the retention of staff is therefore critical in ensuring that the group’s vision is achieved,” the group said.
Vunani shares closed 4.76 percent higher at R2.20 on the JSE yesterday.