Alexander Forbes ‘turns the corner’
SOUTH Africa’s largest pension funds administrator, Alexander Forbes, says it has arrested the exodus of executives and profit declines in its business and it can confidently say to shareholders that it has “turned the corner”.
The results the company reported on Monday were for the six months ended in September 2019.
Despite recording only a 1 percent increase in operating income and 3 percent operating profit from its remaining businesses, Alexander Forbes CEO Dawie de Villiers says given where the company comes from, he thinks it’s finally delivering to shareholders.
The company’s headline earnings per share — a preferred measure of profitability, as it excludes impact of once-off transactions — has increased by 42 percent.
“One person might say that’s only 1 percent…because that percentage up in revenue in six months shows we’ve turned the corner as a company. At a time like this, a year ago we could have lost a lot of clients, we could have lost a lot of staff. To grow revenue in an environment like this, in a stage where we were as Alexander Forbes, it shows change to the right direction,” said De Villiers. — Fin24