INVESTORS ARE eager to find out what this counter is up to. It has placed trading of its stock under cautionary, pending an outcome of some “negotiations”. During a difficult period for boutique money managers, this blackowned firm has landed back in profit land. Yet, for the FY 2012 revenue in its advisory services only increased a measly 1%.
Why? The Public sector. The division mainly provides advisory services to the public sector, which was hit hard last year due to nonapproval of budgets ahead of the ANCs elec- tive conference in Mangaung, Bloemfontein. Political games will continue to well after the 2014 elections are done and dusted.
No dividends were declared for the said financial year. However, we have drummed the issue that not paying dividends does not necessary mean poor performance, rather that the money will be deployed elsewhere in a bid to enhance shareholder value.
For now though, much remains uncertain.