Alexander Forbes Group Holdings (Alexforbes) said headline earnings per share (HEPS) for the 12 months to March 31 are expected to increase between 10% and 20% when the group releases its annual results around June 9, 2025.
The management of the JSE-listed financial services group said in a trading statement Tuesday that HEPS is expected to be between 67.7 cents and 73.8 cents, compared with 61.5 cents the previous year. The result would also reflect a payment arising from a legal claim.
The share price notched up 2.1% to R8.85 Tuesday morning after the release of the earnings forecast, while at the same time, the JSE’s financial index was down by 0.22%. Alexforbes’ share price was 34% higher than a year before.
Basic earnings per share are expected to increase between 25% and 35% to between 68.4 cents and 73.8 cents from 54.7 cents the previous year.
The management said operating financial results were in line with expectations and reflected growth in operating income, owing to strong market growth, which resulted in higher average assets under management, inflationary increases from within the retirements and healthcare consulting client base, and high client retention.
In addition, consolidation of acquisitions completed in previous financial years and higher than expected two-pot claims volumes also contributed to the top line.
Expense growth was influenced by a change in property lease contracts and related accounting treatment, acquisitions that were consolidated, and higher costs from the implementation of the two-pot system.
Group operating profit before non-trading and capital items was expected to grow between 12% and 16%.
The anticipated increase in the basic and headline earnings per share was impacted by the prior year results that included an impairment of goodwill, intangible assets, and software of R90 million.
In 2021, the group provided for a claim from a known error that required redress, relating to a UK subsidiary sold in 2012. This provision and subsequent payment of the claim by the group were referred to as the Enhanced Transfer Values (ETV) liability matter in previous financial disclosures.
The provision was made due to one insurer in the layered insurance program declining to honour their insurance commitment. A legal process was pursued against the insurer in two phases, the first of which was ruled upon with finality in Alexforbes’ favour on April 2, 2025.
The award, which included both interest and costs, had resulted in a profit being recognised in discontinued operations of R152m, plus interest of R34m being recognised in continuing operations in the current year.
Alexforbes’ management intended to continue to pursue the remainder of the claim through arbitration, they said in a statement.
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