Alexforbes raises interim dividend 9% as operating income grows

Alexforbes raised its interim dividend 9% after solid performances across its corporate, investments, retail and growth market segments.

"We brought stability and confidence to our clients by anchoring our propositions on the delivery of best advice. Our advice allays fears, creates clarity of thought and helps clients make better decisions. It's the role that Alexforbes has played for 90 years and will continue to do so," said the CEO Dawie de Villiers.

On the JSE on Monday morning, Alexforbes' share price fell 2.22% to R8.35 after the release of the results, a price that was 11% higher over a year.

To mark its 90-year year, the group launched a free e-book designed to build early money skills among children aged 7-9. "This book is our 90th birthday present to all of South Africa's parents, grandparents and teachers to help them connect children to the principles of financial literacy. We've taken inspiration from fables like The Tortoise and the Hare amongst many others to educate while entertaining," said De Villiers.

Operating income increased by 9% to R2.33 billion for the six months September 30, 2023, while normalised profit from operations increased 18% to R446m. Headline earnings per share from total operations increased by 17% to 33.2 cents a share.

The rise in operating income was supported by higher average assets under management, positive investment performance, inflationary increases within the retirement client base, strong client retention and robust new business flows across both the investments and retail segments. Operating expenses increased by 10% to R1.9bn due to the cash settlement of a portion of the long-term incentive plan awards, and prior period lease adjustments following the renewal of the head office lease in September 2024.

Excluding these items, operating expense growth was contained at 3% year-on-year.

Total assets under management and administration closed at R696bn, up 23% year-on-year. Institutional new business flows amounted to R28.4bn. Retail new business flows grew 33% to R15.6bn. An interim cash dividend of 24 cents a share was declared.

"Alexforbes's position as an investment destination is gaining traction among clients, IFAs (Independent Financial Advisors) and the broader investment community. ABSIP (Association of Black Securities and Investment Professionals) has recognised Alexforbes Investments as South Africa's Best Asset Consultant and Multi-manager at their Financial Services Symposium 2023," said De Villiers.

He said Alexforbes Impact Advisory was helping shape ESG (Environmental, Social, and Governance) and sustainability practices for retirement funds and corporates. "The acquisition of the Paragon Impact platform strengthens our offering and creates new opportunities, including the launch of Sustainable Development Goals (SDG) Impact Awards and an associated impact ETF in the first half of 2026," said De Villiers.

He said they continue to influence sustainability-focused regulatory reform through collaboration with the CIPC (Companies and Intellectual Property Commission) and the dtic (the Department of Trade, Industry and Competition in South Africa), following the group's inaugural national sustainability reporting survey.

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