Ecsponent interim results December 2018
Revenue for the interim period increased to R200.2 million (2017: R154.6 million), operating profit jumped to R218.1 million (2017: R128.2 million), profit for the period from continuing operations fell to R3.8 million (2017: R15.7 million), while headline earnings per share attributable to equity holders of the parent lowered to 0.311 cents per share (2017: 1.698 cents per share).
No ordinary dividends have been declared or proposed for the year.
Preference Share dividends of R134 million accrued to investors for the six months ended 31 December 2018. The dividends are classified as finance costs and included in the finance cost expense in the Condensed Consolidated Statement of Profit and Loss and Comprehensive Income.
The Company has six classes of preference shares in issue with the following summarised dividend terms:
- Class A – 10% fixed rate monthly dividend;
- Class B – 0% monthly dividend, but redeeming at a rate equal to 170% of the Initial Issue Price;
- Class C – prime plus 4% floating rate monthly dividend;
- Class D – 12.5% fixed rate monthly dividend;
- Class E – 11.25% fixed rate monthly dividend; and
- Class G – 10% fixed rate monthly dividend.
Key elements of the Group's on-going growth strategy are:
• the continued focus on core businesses;
• ongoing investment in the Group's credit operations, including the deployment of the new Afrexim facility, once this is approved;
- growth in the Wealth business through increase assets under management (AUM) as well as product diversification.
- consolidation of the Group's interest in the listed MyBucks investment;
- increased emphasis on high yield equity opportunities and sector diversification
• obtaining rand-based and foreign currency institutional funding; and
• aggressive cost rationalisation/reduction.
The abovementioned approach is aimed at the continued development of a robust and complementary financial services Group which continues to provide sustainable returns.