Alexforbes declares special dividend – giving shareholders an extra R778 million – BusinessTech
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Alexfobes has declared a special dividend after a strong set of results for the 12 months ended 31 March 2024.
The group’s operating income increased by 12% to R3.9 billion, while headline earnings per share from total operations were up 29% to 61.5 cents.
The group’s closing assets under management and administration increased by 16% to R525 billion.
The group said that the growth resulted from the deliberate execution of its strategy, new business wins, and acquisition implementation and reflects the positive market performance in the current year.
“We set out to transform our business, and I am pleased with our disciplined execution, consistent delivery over time, capacity building and progress towards our ambition as a group,” said Dawie de Villiers.
Amid the strong performance, the group declared a gross final cash dividend of 30 cents per share, resulting in a 19% increase in the annual dividend.
The board also declared a gross special cash dividend of 60 cents per share, distributing R778 million in additional cash to shareholders and reducing the group’s surplus capital position.
It said that declaring a special dividend reflects its strong cash performance and desire to improve capital efficiencies.
| Financials | FY2023 | FY2024 | Change |
| Operating income (Rm) | 3 478 | 3 905 | +12% |
| Profit for the year (Rm) | 553 | 580 | 5% |
| Basic earnings per share (cents) | 57.1 | 57.1 | -4% |
| Headline earnings per share (cents) | 47.7 | 61.5 | 29% |
| Annual dividend per share (cents) | 42 | 50 | 19% |
Two-pot retirement system optimism
The group also feels positive about the implementation of the two-pot retirement system on 1 September 2024.
The new system will allow retirement fund members to access a portion of their funds before retirement while ensuring that two-thirds of their savings are only accessed upon retirement.
“Alexforbes has been gearing itself towards the implementation of the two-pot retirement system that directly impacts its administration system capabilities, digital suite and engagement with members on an unprecedented scale,” said the group.
“The company regards this as an opportunity to connect with, engage and educate members about their options and the long-term value of their retirement fund investments.”
“In doing so, Alexforbes believes that it can build relationships with members that will ultimately result in the opportunity to provide the best advice.”
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