AEEI delivers strong annual results
AFRICAN Equity Empowerment Investments (AEEI), a diversified investment and empowerment company, posted a strong set of annual results yesterday as it reaped the benefits of robust performance across its businesses.
AEEI’s food, fishing and IT divisions exceeded expectations in the year to August 31.
Premier Fishing SA, which reported a rise in turnover by 11 percent to R349 million and operating profit up 33 percent to R68m, saw improved efficiencies, catch rates, sales volumes and better pricing.
“In a tough operating environment, and at a time when investment markets have largely been bearish, AEEI has not only grown its bottom line profits, but also increased its underlying investment value,” the company said.
Headline earnings jumped by 94 percent to R153m in the year under review, while headline earnings a share rose to 31.06c from 16.03c.
Basic earnings were up 58 percent to R153m from R97m, the company said. Revenue for the period was 8 percent higher at R672m from R621m. Dividends declared increased by 25 percent to 2.5c per share.
The results caused AEEI’s shares to gain as much as 5.3 percent to R4, before being last quoted up 2.63 percent at R3.90, which valued the company at R5.82 billion.
The company also said implementation of its “Vision 2020 Vision” strategy contributed to the strong performance, along with a focus on continuous reinvestment and strategic acquisitions.
Strategic stakes
AEEI’s strategic investment arm owns stakes in British Telecom Communications Services South Africa, Saab South Africa and Pioneer Food Group. AEEI said it was in the final stages of increasing its shareholding in Saab.
“At the end of 2014 we were confident we would show growth, despite the challenges the economy faced,” company chief executive Khalid Abdulla said yesterday.
“I am delighted we could deliver on our expectations to the market and our shareholders.”
AEEI’s total assets increased by 14 percent to R1.345bn.
The net asset value (NAV), one of the most important measures of performance, rose by 25 percent to R712m.
This shows a constant growth path of the group’s financial position year on year.
The NAV per share has jumped to 144.93c from 115.81c. An operational cash profit of about R103m was achieved for the year under review.
Non-executive chairman Vukile Mehana said he was delighted with AEEI’s strong performance. He said he was confident the group was accomplishing its goals by growing strategically in operations and in its diversified investment portfolio. Sekunjalo Investments Holdings, which owns Independent Media, publisher of numerous titles, including Business Report, owns about 62 percent of AEEI, formerly known as Sekunjalo Investments.