Alexforbes HY HEPS slip 15%
Retirement fund administrator Alexforbes reported a half-year profit decline but was able to deliver on it's shareholder dividend pay out to the tune of 25 per cent. CNBC Africa spoke to the CEO, Dawie de Villiers for more.
Tue, 06 Dec 2022 07:29:53 GMT
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AI Generated Summary
- Despite a 15% decline in half-year profits, Alexforbes remains committed to its shareholders by delivering a 25% dividend payout, showcasing confidence in the company's growth strategy.
- CEO Dawie de Villiers highlighted the challenges posed by market volatility, political uncertainties, and ongoing power outages, emphasizing the importance of contingency plans and strategic investments in digital initiatives.
- The company's increased dividend declaration reflects shareholder support for Alexforbes' growth forecast and new business projections, with a focus on acquisitions and operational efficiency improvements driving long-term value creation.
Retirement fund administrator Alexforbes has recently reported a 15% decline in its half-year profit, but the company remains confident in its future growth strategy. Despite the profit decline, Alexforbes was able to deliver a 25% shareholder dividend payout, showcasing its commitment to shareholders. CEO Dawie de Villiers spoke with CNBC Africa about the company's performance and plans for the future. The discussion highlighted the challenges faced by Alexforbes, including market volatility, political uncertainties, and ongoing power outages in the region.
De Villiers acknowledged the tough environment for corporate entities, especially those like Alexforbes that are navigating a turnaround strategy and gearing up for growth. He mentioned the importance of having contingency plans in place to address any unforeseen challenges that may arise in the future. While market returns remain a key factor affecting the company's revenue, de Villiers expressed optimism about the current growth trajectory and the ongoing investment in digital initiatives to enhance member engagement.
One of the key highlights of the discussion was Alexforbes' increased dividend declaration, a move that reflects the company's confidence in its growth forecast and ability to generate cash. De Villiers emphasized that the decision to raise the dividend payout underscored shareholder support for the company's strategy. The CEO also discussed the significance of projecting new business opportunities, with a focus on a pipeline of clients and recent acquisitions that are expected to contribute to future growth.
Looking ahead, de Villiers addressed the potential impact on the company's share price, noting that while short-term fluctuations may occur, the long-term value creation through acquisitions and operational efficiency improvements is likely to drive the share price upwards. Despite facing challenges such as thin liquidity in the market, Alexforbes remains committed to adding value to its business and enhancing shareholder returns.
In terms of acquisition strategy, de Villiers revealed that the company is weighing options between share buybacks and pursuing new acquisitions to further strengthen its market position. While maintaining a cautious approach to managing its cash reserves, Alexforbes is actively exploring opportunities to consolidate businesses and enhance its capabilities through strategic acquisitions.
Overall, Alexforbes' performance in the face of market challenges demonstrates a resilient approach to navigating uncertainties and pursuing sustainable growth. The company's strategic focus on digital innovation, new business development, and shareholder value creation positions it well for future success in the dynamic financial services industry.