Vunani Limited Reports 56% Drop in Operating Profit Despite 2% Revenue Growth

  • Vunani's revenue grew by 2% to R665.2 million, but operating profit fell by 56% to R55.2 million.
  • Earnings per share decreased significantly to 9.0 cents from 33.0 cents in the previous year.
  • A final dividend of 9.0 cents per share was declared, down from 11.0 cents last year.

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 Metric20242023Change
Revenue and Insurance RevenueR665.2 millionR652.7 million+2%
Operating ProfitR55.2 millionR125.5 million-56%
Earnings per Share9.0 cents33.0 cents-73%
Headline Earnings per Share7.4 cents30.1 cents-75%
Total Comprehensive IncomeR24.2 millionR57.9 million-58%
Profit Attributable to Equity HoldersR14.4 millionR52.4 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

EventDate
Declaration and FinalisationJune 21, 2024
Last Day to Trade Cum DividendJuly 9, 2024
Shares Commence Trading Ex-DividendJuly 10, 2024
Record DateJuly 12, 2024
Dividend Payment DateJuly 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 InformationAmount
Gross Ordinary Dividend9.00000 cents
Net Ordinary Dividend (Non-exempt Shareholders)7.20000 cents
Shares in Issue161,155,915
Vunani Limited Tax Reference Number9841003032

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.