The AST Group has increased its revenue to over R1 billion for the year to June 2000. The revenue, up 47% on the previous year, resulted in an operating profit of R117 million.
Adjusted headline earnings per share of 21.44c grew from the 13.01c reported for the previous year.
The group says the increase in turnover is largely due to organic growth and 90% of it is annuity income.
AST derived 9% of its turnover for the year in foreign income. CEO Jan van Zyl says the group will battle to maintain this figure.
"We will struggle to keep this figure high, not because we aren`t performing well internationally, but because our local operations are doing so well. It`s a great position to be in."
Van Zyl says the ABSA deal announced in March has bedded down well, but the main profits will only be seen in the next financial year.
"This year we only saw the benefit of two months dealings with ABSA, but we should see very healthy figures this time next year," says Van Zyl.
The group, which re-listed as AST-A in August after the merger with Abraxas, will seek approval from shareholders to revert to using AST as the branded name for the company. The Abraxas division of the group will still trade under its own name.
"These results are a reflection of our focus on quality revenue flows and strong asset management processes," says executive chairman of the AST Group, Gerrie de Klerk.
"Our success can be attributed to the fact that we have managed to grow market share while maintaining profitability. The AST business model has found wider acceptance and, as we expand our knowledge base and delivery infrastructure, our clients benefit increasingly from the scalability of our operations and the resultant cost benefits".
The company says that although there is still money to be made in Southern Africa, it will look further afield for new business.
"We expect substantial organic growth in the coming year. We are expanding our current business with our existing clients and are establishing new strategic partnerships. Significant growth opportunities also exist for the group through strategic acquisitions in online customer services and in extending our geographical footprint beyond Africa," concludes De Klerk.
Related stories:
AST-A, ABSA create R1b company
Share
