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| Information Source: JSE SENS |
| Alexander Forbes Group Holdings Limited |
| Performance highlights |
- Operating income up 13% to R4 397 million- Profit from operations (before non-trading and capital items) up 14% to R911 million
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- Headline earnings per share from total operations up 15% to 70.8 cents per share- Normalised headline earnings per share up 23% to 69.1 cents per share
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- Cash generated from continuing operations up 15% to R1 230 million
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- Our capital position remains sound with a regulatory surplus of R1 348 million. The group cover ratio of 2.3 times is comfortably above the target solvency cover ratio of 1.2 times
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- Gross final cash dividend of 33 cents per share, up 10%, taking the annual dividend to 55 cents per share, up 10% year on year
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- Gross special cash dividend of 10 cents per share declared
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- Total closing assets(1) increased 14% year on year to R599 billion
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| Our financial performance |
| Operating income increased 13% to R4 397 million owing to strong investment performance underpinned by positive market growth that resulted in higher average assets under management, inflationary increases from within our retirements and healthcare consulting client base and high client retention. In addition, consolidation of acquisitions completed in previous financial years and higher than expected two-pot claims volumes also contributed to our top line. |
| Operating expenses of R3 538 million increased 11%, influenced by the previously disclosed change in our property lease contracts and the related accounting treatment under IFRS 16, acquisitions that have been fully consolidated and higher costs related to the implementation of the two-pot system. Excluding the IFRS lease adjustment and the acquisitive increase in expenses, organic growth in operating expenses was 6% year on year, including two-pot related expenditure. |
| Profit from operations (before non-trading and capital items) increased 14% to R911 million. Cash generated from continuing operations remains strong at R1 230 million, up 15% year on year. |
| Profit for the year from continuing operations improved 28% to R745 million, owing to a significant decrease in non-trading and capital items. The prior year results reflect the one-off impairment of goodwill, intangible assets and software. |
| Headline earnings per share from total operations increased 15% to 70.8 cents per share. This increase reflects the financial performance of the discontinued operations in the current year. |
| Normalised headline earnings per share improved 23% to 69.1 cents per share. |
| The group balance sheet remains financially robust, supported by the sustained cash flow generated from continuing operations, with a sound regulatory surplus capital position of R1 348 million and available cash of R700 million. The group cover ratio of 2.3 times remains above the target solvency cover ratio of 1.2 times. |
| A gross final cash dividend of 33 cents per share has been declared which when added to the interim dividend of 22 cents per share amounts to a total dividend of 55 cents per share for the year. The total annual dividend is up 10% year on year. |
| In addition, the board has declared a gross special dividend of 10 cents per share. |
| Chief executive officer, Dawie de Villiers, commented: 'What excites me about Alexforbes is the way we have punched above our weight for 90 years and the impact we've had on the financial services industry. We have influenced and led real change and continue to do so,o and most importantly, we secure the financial well-being of members in the retirement funds that we serve. With the vision of transforming clients' financial journeys, I am proud to share that we are making financial advice available to over 1 million members in our base. Across all ages, income bands and levels of wealth, every single one of our members can now access financial advice from Alexforbes to help them invest, plan and reach their investment destination.' |
| Final and special cash dividend declaration |
| Alexforbes's dividend policy is set at a target range of 1.0 to 1.5 times earnings cover. The dividend is set in relation to normalised headline earnings. |
| A final dividend declaration has been considered by the board, taking into account the group's current and projected regulatory position, the available cash in the group, as well as the group's high cash generation. |
| The board has declared a gross final cash dividend of 33 cents per ordinary share (26.4 cents per ordinary share net of dividend withholding tax) for the twelve months ended 31 March 2025 (2024: 30 cents per ordinary share). |
| The gross final cash dividend when added to the gross interim dividend of 22 cents per ordinary share amounts to a total annual dividend of 55 cents per ordinary share for the year. The total annual dividend is up 10% year on year. |
| In addition, the board has declared a gross special cash dividend of 10 cents per ordinary share (8 cents per ordinary share net of dividend withholding tax). The receipt of proceeds following the successful litigation of phase one of the ETV liability matter is the basis for the board's decision to declare this special dividend. |
| The board believes the cash and capital position, after the payment of the final and special dividend, will still provide sufficient liquidity and capital strength. |
| Both dividends have been declared from income reserves. |
| A dividend withholding tax of 20% will apply to all shareholders who are not exempt from the dividend withholding tax, or who are entitled to a reduced rate in terms of the applicable double taxation agreement. |
| The issued number of shares as of the date of declaration is 1,288,511,454. The tax reference number of Alexander Forbes Group Holdings Limited is 9404921158. |
| The directors have satisfied the solvency and liquidity test as required in terms of section 4(1) of the Companies Act 71 of 2008. |
| The salient dates for the final and special dividend will be as follows: |
| Declaration date: Monday 9 June 2025v |
| Finalisation date for special dividend by 11.00: Tuesday, 8 July 2025 |
| Last day of trade to receive a dividend: Tuesday, 15 July 2025 |
| Shares commence trading 'ex' dividend: Tuesday, 15 July 2025 |
| Record date: Friday, 18 July 2025 |
| Payment date: Monday, 21 July 2025 |
| Share certificates may not be dematerialised or rematerialised between Wednesday 16 July 2025 and Friday 18 July 2025, both days inclusive. |
| For the full document, click the link below |
| Alexander Forbes Group Holdings Limited |
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