Issued: 4 April 2016
Listed financial services company, Ecsponent Limited’s annual financial results for the year ending December 2015 show exceptional growth, with profits after tax increasing by 281% to R19.9 million.
Highlights from the group’s operations in the 2015 results include:
- Total revenue increased by 178% to R159.7 million for the December 2015 financial period compared to R57.4 million for the December 2014 financial year; and
- Total assets increased by 210% to R466.2 million at 31 December 2015 compared to R150.2 million at 31 December 2014.
External revenue generated by the group’s financial services operations increased by 175.5% to R64.5 million for the year ended 31 December 2015, compared to R23.4 million for the 2014 financial year. The group’s revenue from financial services amounted to 40.4% of total revenue for the 2015 financial year.
Eunè Engelbrecht, CEO of Ecsponent Limited said that during the period under review, the group’s strategic focus remained on investment in companies, specifically in the financial services sector, that have clear African and global market applications.
“These companies are required to produce products or provide services with high barriers to entry and high gross profit margins, and this expansion strategy will remain in place indefinitely,” he adds.
Funding for the expansion strategy continued through Ecsponent’s listed preference share programme. The company registered a R5 billion preference share programme in September 2014 and by 31 December 2015, investments in excess of R260 million were raised from the public.
Preference share dividends and interest amounting to R25.1 million accrued to investors during the 2015 financial period.
Ongoing expansion in Financial Services South Africa
The group’s financial services operations, which includes capital raising through the preference share programme and SME funding, continued its exponential growth during the period, with total assets increasing by over 420% to R443 million and a net asset value of R93 million.
With growing results in financial services and strong support for its preference share programme, the group has established a solid base for expansion in this area. This, coupled with its recent acquisition of a majority stake in Clade Investment Management to enhance its asset management capabilities, leaves Ecsponent well positioned to expand its institutional and retail investment offerings.
“We will soon introduce a range of regulated investment products to the market,” says Engelbrecht, “that will give investors the opportunity to benefit from our forward-thinking investment approach, using investment products such as retirement annuities, endowment, etc.”
The group’s vision to develop a robust and complementary financial services group of companies is taking shape and showing returns. The management team is happy with the turn-around of the group and the 2016 period will be a year of focused growth through product and market extension, aggressive trading and cost reduction, and acquisitions that fit into the group’s core strategy,” Engelbrecht concludes.