Johannesburg 24 May 2017 – JSE-listed African financial services company, Ecsponent Limited, today published a trading update, which advised shareholders that the Group expects to continue to build on the last six years of exponential growth.
The Group announced that its earnings per share (EPS) for the year ended 31 March 2016 is expected to increase by at least 185%. This increase will result in a minimum EPS of 7.384, as compared to the EPS of 2.591 for the comparative period.
Profitability was notably driven by organic growth and by the Group’s successful conclusion of corporate actions in the last 12 months. These included the disposal of non-core assets at R141 million, with a gain of R74.6 million.
Ecsponent recently announced several transactions to streamline its operations into three pillars – investment services, secured business credit, and listed and private equity. Terence Gregory, Group CEO, says that these transactions will contribute to further improving the Group’s results in line with its set growth objectives.
He adds, “The R69-million after-tax profits included in the IFRS-guided EPS calculation, were excluded from the SAICA-guided HEPS calculation and therefore earnings growth did not flow through to the headline earnings per share (HEPS).”
Gregory says that the Group’s performance is best guided by EPS, as two of the corporate actions announced on 12 December 2016 – the Sure Choice disposal and the dilution of its shareholding in Ecsponent Financial Services Limited Zambia – will be concluded and accounted for in the new financial year.
“While the Group operates in this acquisition phase, the HEPS measure is not a true reflection on the Group’s performance,” he says.
“As a group, we have met our growth milestones over the last six years, establishing a strong base from which to accelerate our progress. With our transactions concluded, all energy and attention are focused on maintaining this momentum,” he concludes.