Invicta financial results reflect ‘remarkable’ return

JSE-listed investment holding and management company Invicta Holdings reported a 75.5% increase in net profit (continuing operations) on Monday, from R296.8 million in 2021 to R520.8 million for its financial year ended 31 March.

The group says the net profit is reflected in its basic earnings per share of 408 cents and headline earnings per share of 343 cents, which increased by 92% and 99% for continuing operations respectively.

Operating profit before interest and forex improved by 15% to R670.6 million and revenue for ongoing operations rose by 15% to R7.2 billion, in comparison to R6.25 billion in FY21.

“Against the backdrop of a world facing both economic and geopolitical uncertainty, we are pleased to present a strong set of results for the group,” said Invicta chief executive officer Steven Joffe.

“These results reflect how the group’s businesses have recovered remarkably well from the effects of the Covid pandemic and the associated lockdowns.”

Invicta’s board approved a final dividend of 90c per share, compared to 60c per share in the prior financial year, following the improvement in results and current debt levels.

Independent analyst at Small Talk Daily, Anthony Clark, said the leap in dividend is “extremely pleasing” and shows the group’s confidence in its ability to grow earnings for the next 12 to 18 months in order to continue paying “robust” dividends.

“You do not increase your dividend that far and that fast given what were a fairly lacklustre set of results, unless you were absolutely confident that going forward the rebuild of your underlying earning space was efficient to justify this dividend payment,” he said.

Invicta noted that results were also influenced by the restructuring of its Singaporean operations, Kian Ann Group, which resulted in a deal-related taxation of R16 million.