Business / Companies
Strong first-half earnings performance by Imara
26 Jan 2015 at 13:29hrs | Views
Imara, the pan-African financial services group, has reported "pleasing" earnings growth for the six months to October 31, 2014, with profit after tax of P10.94 million, up 85% from P5.9 million in the comparative period of the previous year.
The Botswana-registered business grew revenue by 16% to P107.4 million versus a comparative of P92.4 million.
Total comprehensive income net of tax amounted to P13.45, up 151% from a comparative figure of P5.37 million. Profit after tax attributable to shareholders rose to P9.02 million - up 186% from P3.15 million.
No dividend was paid for the period, though a final dividend of P2.96 million was distributed in the last six months in relation to the April 2014 financial year.
Imara group CEO Mark Tunmer commented: "Earnings performance for the first half was pleasing, coming off much-improved results in the previous 12 months.
"All divisions made a contribution, creating solid momentum on a broad front.
"No dividend was distributed, in line with long-term group policy on interim earnings."
Imara is well-capitalised with P72.20 million in cash and no borrowings. The consolidated position remains solid with total assets of P287.55 million.
However, Tunmer said cash flows for the period were negative by P11.99 million.
"This is disappointing," he added. "However, the negative cash flow relates largely to changes to working capital at Imara S.P. Reid (ISPR), our Johannesburg stockbroking business."
The group parent, Imara Holdings Limited has been trading under a cautionary announcement since 17 September 2014. This relates to the planned disposal of ISPR.
The sale is expected to realise approximately P100 million, though the envisaged transaction is subject to conditions precedent.
The Asset Management Division continued to be the main contributor to profitability and cash flow while the Corporate Finance division "reported particularly strong results on the conclusion of several regional mandates", said Tunmer.
Results at the Stockbroking Division were in line with the comparative period, with a strong first-quarter contribution from Zimbabwe. Earnings from the Trust & Administration Division were little changed.
First-half results included a share of profits from associates of P2.68 million, relating mainly to the contribution of Stockbrokers Zambia Limited.
The outlook for the second half of the year may be challenging, said Tunmer. The timing of the planned sale of ISPR could have material influence on performance.
He noted: "Global markets continue to be characterised by volatility and high levels of uncertainty, and equity markets generally declined in the second quarter, impacting both the Asset Management and Stockbroking divisions.
"The effective date of the ISPR disposal is indeterminable at present, but should this occur before 30 April 2015, the Stockbroking Division's earnings contribution could be adversely affected.
"In view of these factors it is unlikely that the strongly improved earnings performance over the past 18 months can be sustained in the second half."
The Botswana-registered business grew revenue by 16% to P107.4 million versus a comparative of P92.4 million.
Total comprehensive income net of tax amounted to P13.45, up 151% from a comparative figure of P5.37 million. Profit after tax attributable to shareholders rose to P9.02 million - up 186% from P3.15 million.
No dividend was paid for the period, though a final dividend of P2.96 million was distributed in the last six months in relation to the April 2014 financial year.
Imara group CEO Mark Tunmer commented: "Earnings performance for the first half was pleasing, coming off much-improved results in the previous 12 months.
"All divisions made a contribution, creating solid momentum on a broad front.
"No dividend was distributed, in line with long-term group policy on interim earnings."
Imara is well-capitalised with P72.20 million in cash and no borrowings. The consolidated position remains solid with total assets of P287.55 million.
However, Tunmer said cash flows for the period were negative by P11.99 million.
"This is disappointing," he added. "However, the negative cash flow relates largely to changes to working capital at Imara S.P. Reid (ISPR), our Johannesburg stockbroking business."
The group parent, Imara Holdings Limited has been trading under a cautionary announcement since 17 September 2014. This relates to the planned disposal of ISPR.
The sale is expected to realise approximately P100 million, though the envisaged transaction is subject to conditions precedent.
The Asset Management Division continued to be the main contributor to profitability and cash flow while the Corporate Finance division "reported particularly strong results on the conclusion of several regional mandates", said Tunmer.
Results at the Stockbroking Division were in line with the comparative period, with a strong first-quarter contribution from Zimbabwe. Earnings from the Trust & Administration Division were little changed.
First-half results included a share of profits from associates of P2.68 million, relating mainly to the contribution of Stockbrokers Zambia Limited.
The outlook for the second half of the year may be challenging, said Tunmer. The timing of the planned sale of ISPR could have material influence on performance.
He noted: "Global markets continue to be characterised by volatility and high levels of uncertainty, and equity markets generally declined in the second quarter, impacting both the Asset Management and Stockbroking divisions.
"The effective date of the ISPR disposal is indeterminable at present, but should this occur before 30 April 2015, the Stockbroking Division's earnings contribution could be adversely affected.
"In view of these factors it is unlikely that the strongly improved earnings performance over the past 18 months can be sustained in the second half."
Source - cleardistinction
