Alexander Forbes says it anticipates an increase of 4 to 6 percent in profit before non-trading and capital items.
Financial services group Alexander Forbes, expected to announce its full-year financial results on 11 June, has said that the increase for the year ended 31 March would amount to R977 million to R995 million – higher than the R937 million recorded in the last period. That said, headline earnings per share (HEPS) were likely to decrease by 15 to 20 percent, the company noted, from R683 million reported in the prior year.
The company attributes the decline to the group’s disposal of its 60-percent interest in Lane Clark and Peacock LLP (a financial, actuarial and business consulting firm), along with its subsidiaries in Ireland and the Netherlands.
Moreover, a goodwill impairment of R317 million was recorded following poor performance of the group’s long-term insurance business, AF Life. The group said:
"The AF Life business remains below optimal scale, with growth expected to take place over the medium to long-term.”
The group further noted that a reduction in cash flows was experienced, “driven by heightened claims experience in the business and industry in general”.
Pictured: Naidene Ford-Hoon, Group CFO