Vu­nani re­ports strong earn­ings de­spite tough eco­nomic cli­mate

Pretoria News - - Companies - SANDILE MCHUNU sandile.mchunu@inl.co.za

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.

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