AEEI’s headline earnings soar by 350 percent |
AYO Technology boosts revenue by 207%
DIVERSIFIED black empowered investment group African Equity Empowerment Group (AEEI) increased normalised headline earnings by 350 percent to R553 million in the year to August 31, 2019.
The audited results, released on Friday, showed revenue up 243 percent to R2.4 billion. Headline earnings increased by 317 percent to R496m.
The group has some 6 000 employees throughout the country, directly and/or indirectly. It has operational investments in food and fishing, technology, health and beauty, events and tourism, biotechnology as well as strategic investments in blue-chip companies.
Headline earnings a share increased by 316 percent from 24.24 cents to 100.89c.
Net asset value grew by 14 percent to R6.4bn.
The total annual dividend was 11 percent, up at 17c per share, after a 6c final dividend was declared. This translates to a current dividend yield of more than 15 percent per year.
The information and technology sector company AYO Technology Solutions (AYO), which previously separately listed on the JSE, delivered strong organic and acquisitive growth during the year and grew revenue by 207 percent to R1.9bn from the prior year.
AEEI chief executive Khalid Abdulla said: “AEEI has set out to strategically grow its operations and asset base annually, which we once again realised through consistent growth in profits and assets. Despite the tough market conditions – not only in South Africa, but globally – I am pleased that the group has maintained its focus and stayed the course to deliver these outstanding results.”
He said AEEI remained on a positive trajectory and they intended to continue to improve the financial performance, while driving sustainable returns for stakeholders.
During the year AEEI regained control over its investment in AYO. This incurred a once-off accounting (IFRS 10) loss to AEEI on a deemed disposal of an associate, which affected earnings. Notwithstanding this, headline earnings increased by 317 percent to R496m.
Premier Fishing and Brands (Premier), a vertically integrated fishing group, lifted revenue 17 percent to R575m and produced satisfactory profit, primarily due to consistent sales volumes in the lobster, abalone and squid divisions.
Premier, with its focus on sustainability, remains one of the largest black-owned and managed fishing businesses in South Africa.
AEEI’s strategic investments comprise equity in BT Communications Services South Africa (BTSA), Saab Grintek Defence and Sygnia Limited (Sygnia). AEEI is one of the largest minority shareholders in Sygnia.
“All our strategic investments are producing good results since the dates of acquisition, with steady growth in earnings and regular dividends received,” said Abdulla.
Genius Biotherapeutics, AEEI’s research and development division, in collaboration with research partners based at the University of Cape Town, was set to commence human clinical trials on breast cancer next year.
“For AEEI to be at the top of its game and to remain there, it needs to have durable and resilient foundations. This is evidenced in the past successive years of strong performance and the fact that many stakeholders actively seek it out. The group may have had its share of media scrutiny over this past year, however, the teams remain focused, and AEEI’s increased contribution to its shareholder value speaks volumes,” the group’s board said.