Alexander Forbes today released its interim results for the six months to 30 September 2002. The group produced a strong trading performance with growth in revenue of 31% and trading profit growth of 27%.
The results reflected the organic growth in a number of core businesses and the benefits of hard currency earnings from international operations. The group reported core headline earnings per share increasing by 22% to 97.1 cents.
Growth was recorded across all regions in which the group operates:
- The African (principally South Africa) region increased trading profits 22% to R284 million.
- The European (principally UK) region increased trading profits 23% to R258 million.
- The Asia and Latin America regions contributed a combined R20 million to trading profits of the group.
Chief executive designate, Rael Gordon commented: "It is exciting to see the group reach a point where more than 60% of the revenues now come from international operations. The hardening insurance rate cycle and the hard currency earnings had a positive effect on the growth in the international Risk businesses. The performance of our UK financial services business was hampered by losses in our bureau and software business. The acquisition of UK actuarial consulting firm, Lane Clark & Peacock was completed and made a positive contribution to group profits in the four months following acquisition. Agreement has been reached to acquire Schroder`s pension business in the UK."
Gordon continued: "in South Africa our Risk Services business delivered strong performance benefiting from the hard insurance market and a turnaround in a our personal lines business. Financial services traded well in a difficult economic climate. Investment Solutions again delivered an excellent set of results."
Alexander Forbes has previously announced that Millennium Consolidated Investments (MCI) are to lead the purchase of 30% of the South African businesses of Alexander Forbes and, in order to facilitate this empowerment transaction, an offer has been made to buy out the minority shareholders in Investment Solutions.
Gordon advised that the transaction is of significant strategic benefit to the positioning of Alexander Forbes in South Africa and had already impacted on opportunities available to the group. Cyril Ramaphosa has joined the Alexander Forbes Limited board.
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