Vunani Limited announced its reviewed provisional condensed consolidated results for the year ended February 29, 2024. The report shows mixed performance across various metrics.
Key Financial Highlights
Vunani Limited’s revenue and insurance revenue increased by 2% to R665.2 million. However, operating profit saw a significant decline, dropping by 56% to R55.2 million.
| Financial Metric | 2024 | 2023 | Change |
|---|---|---|---|
| Revenue and Insurance Revenue | R665.2 million | R652.7 million | +2% |
| Operating Profit | R55.2 million | R125.5 million | -56% |
| Earnings per Share | 9.0 cents | 33.0 cents | -73% |
| Headline Earnings per Share | 7.4 cents | 30.1 cents | -75% |
| Total Comprehensive Income | R24.2 million | R57.9 million | -58% |
| Profit Attributable to Equity Holders | R14.4 million | R52.4 million | -73% |
Decline in Profits
Earnings per share (EPS) decreased sharply to 9.0 cents from 33.0 cents in the previous year. Headline earnings per share (HEPS) also saw a significant drop to 7.4 cents from 30.1 cents in 2023.
Dividend Declaration
Vunani declared a final dividend of 9.0 cents per share for the year ended February 29, 2024. This is a decrease from the previous year’s dividend of 11.0 cents per share.
Dividend Payment Details
| Event | Date |
|---|---|
| Declaration and Finalisation | June 21, 2024 |
| Last Day to Trade Cum Dividend | July 9, 2024 |
| Shares Commence Trading Ex-Dividend | July 10, 2024 |
| Record Date | July 12, 2024 |
| Dividend Payment Date | July 15, 2024 |
Dividend Tax Information
The local Dividends Withholding Tax rate is 20%. For shareholders exempt from this tax, the gross dividend is 9.00000 cents per share. For those not exempt, the net dividend is 7.20000 cents per share.
| Dividend Information | Amount |
|---|---|
| Gross Ordinary Dividend | 9.00000 cents |
| Net Ordinary Dividend (Non-exempt Shareholders) | 7.20000 cents |
| Shares in Issue | 161,155,915 |
| Vunani Limited Tax Reference Number | 9841003032 |
Segment Performance
Vunani’s performance varied across its different business segments. The group’s segments include fund management, asset administration, insurance, and investment banking, which encompasses advisory services and institutional securities broking.
Fund Management
The fund management segment faced challenges due to market volatility. However, it maintained steady revenue streams.
Asset Administration
The asset administration segment showed resilience with moderate growth. It managed to sustain its performance despite market conditions.
Insurance
The insurance segment experienced a slight increase in revenue. It managed to uphold its contribution to the group’s overall revenue.
Investment Banking
Investment banking, including advisory services and institutional securities broking, faced a tough year. The segment’s performance was impacted by lower transaction volumes.
Comprehensive Income and Profit
The group generated total comprehensive income of R24.2 million, down from R57.9 million in the prior year. Profit attributable to equity holders also decreased significantly to R14.4 million from R52.4 million.
Liquidity and Solvency
The directors confirmed that the company would meet the liquidity and solvency requirements post-dividend payment. This ensures that Vunani remains financially stable despite the challenging year.
Auditor’s Review
The financial statements for the year ended February 29, 2024, were reviewed by BDO Inc. They expressed an unmodified review opinion. Shareholders are advised to review the full auditors’ report for comprehensive details.
Conclusion
Vunani Limited faced a challenging year with significant declines in profits and earnings per share. However, the group showed resilience in revenue generation and maintained its dividend payout, reflecting its commitment to shareholders. The company remains focused on navigating the current market conditions and striving for improved performance in the coming year.