AEEI dividend increases by 76.5 percent
AFRICAN Equity Empowerment Investments ( AEEI), a diversified investment and empowerment group, declared a healthy dividend in the year to August 31 due to strong organic results from underlying investments and acquisitive growth.
A final gross dividend of 20 cents per share was declared, bringing the payout for the 2020 financial year to 30c, a 76.5 percent increase over the previous year.
The JSE- listed group grew revenue 44 percent to R3.4 billion, while its basic earnings per share increased by 101.3 percent and
Chief executive Valentine Dzvova said AEEI had embarked on strategically growing its operations and asset base annually, which this year was partially hindered by the onset of the Covid- 19 pandemic.
“Our focus thus shifted to safeguarding the sustainability of our current subsidiaries, especially those severely impacted by the pandemic.
“Despite the tough market conditions, the global economic crisis, socio- political unrest in the Far East and the impact of Covid- 19 on some of our businesses, the group maintained its focus and stayed the course to deliver these financial results,” she said.
The net asset value per share decreased slightly by 3.66 percent to 1 256.5c, resulting from the negative impact of the pandemic on the global market.
Despite the slight reduction in the net asset value, however, the group continued to retain its strong balance sheet and liquidity, which was strengthened by cash reserves of R3.3bn.
Net cash generated from operating activities increased 39.5 percent to R199.6m.
Dzvova said the results translated into consistent returns which AEEI received through an efficient and resilient business model, diversified investment portfolio, and healthy overall operational performances.
AEEI’S investments include Premier Fishing and Brands, AYO Technology Solutions, Orleans Cosmetics and AfriNat in the health and beauty division, Espafrika and Tripos Travel in the events and tourism division, Genius Biotherapeutics and other stakes in BT Communications Services South Africa, SAAB Grintek and Sygnia.
Chief financial officer Jowayne van Wyk said although the group performed well, it was done so during “immensely challenging times”, yet AEEI remained on a positive trajectory and the intention was to continue improving its financial performance, while driving sustainable returns for stakeholders.”
Dzvova said AEEI was healthy and had steadily paid out growing dividends year- on- year in line with long term investment policies.
“The group has a great platform to pursue further acquisitions in various business sectors to grow aggressively during the next growth phase over the next few years,” she said.