- Operating income up 7% to R3.2 billion enabled by substantial success in attracting new clients and strong investment performance
- Headline earnings per share from continuing operations up 19% y-o-y to 37.2 cents per share
- Final dividend of 20 cents per share (2021: 9 cents per share), increasing the annual dividend by 45% y-o-y to 32 cents per share
- Refreshed vision, brand and corporate activity provides framework to become the most impactful provider of financial advice serving both institutional clients and individual customers
Alexforbes today released a pleasing set of annual results which reflect the company’s disciplined strategic execution, a transformed organisational culture, sound corporate governance and focused innovation.
Operating income increased 7% to R3.2 billion underpinned by substantial success in attracting new clients across all business segments coupled with strong investment performance. Headline earnings per share from continuing operations grew by 19% to 37.2 cents per share, profit from operations before non-trading and capital items was up 9% to R720 million, and a final dividend of 20 cents per share was declared, increasing the annual dividend by 45% to 32 cents per share.
Chief executive officer, Dawie de Villiers, commented: ‘Alexforbes’s results reflect the hard work of the team over the past three years in implementing our turnaround strategy. Our leaders have driven disciplined execution across the business and have cemented the positioning of our advice-led, integrated value proposition resulting in substantial levels of new business flows in consecutive years. We are building on this strong foundation by refreshing our five-year vision to become the most impactful provider of financial advice to institutional clients and individual customers. Both the board and management are excited by the interest expressed in our business by the largest insurer in the United States, Prudential Financial, through the potential change in shareholding transaction announced in March 2022. We look forward to unlocking the prospective strategic benefits of this relationship.’
We have had a year of intent, action and impact:
- Our customer satisfaction score has improved for a third consecutive year.
- Our culture metrics have shown that employee engagement, morale and trust in leadership remain high.
- Continued momentum in winning new business, representing an estimated R148 million in annualised revenue.
- New business asset flows of R11.6 billion achieved in the individual consulting business, up 23% year on year.
- 4 billion in new institutional business assets under management (AuM), with an additional R4.0 billion pending regulatory approvals.
- Significant administration mandates won (with membership within client funds ranging from 7 000 to 60 000 members per fund).
- Notable wins in both the healthcare broking and healthcare management solutions businesses.
- Continued our digital transformation as well as our member engagement and individualisation strategy, in line with our growth ambitions.
- Embedded environmental, social and governance (ESG) principles into our investment process and within our investment portfolios.
- Successfully implemented changes to the Performer portfolio bringing in new thinking and new managers. These changes aim to maintain a well-structured, diversified portfolio solution and accelerate our transformation objectives to advance a more inclusive asset management industry.
Accelerating our journey to become the most impactful provider of financial advice to institutional clients and individual customers
- Completed the sale and transfer of the group risk and retail life businesses to Sanlam Life.
- The group announced three corporate transactions in line with its growth strategy.
- Launched our refreshed vision, purpose, customer value proposition and brand.
- Improved the utilisation of our digital tools across individual customers.
- Delivered the Alexforbes Member Insights research, now augmented by non-retirement fund data.
Concluding, de Villiers says: ‘The business is now in a strong position to forge a greater
connection with the people who we ultimately serve resulting in a refreshed purpose and overarching customer value proposition which is to pioneer insight to deliver advice and solutions that impact people’s lives.’