Alexander Forbes says on track for 2022 turnaround strategy

0
603

JOHANNESBURG, December 4 – South African financial services group Alexander Forbes said on Monday it was on track to meet its turnaround strategy in three years but was vulnerable to political and macroeconomic uncertainty.

In its interim results for the six months ended 30 September. Alexander Forbes said its improving results should be tempered by the realism that the business still has issues to address and was performing “nowhere near its full potential”.

Under its “Ambition 2022” strategy,  operating expenses were contained at 2 percent and group trading margins were further improved to 25.3 percent, up 40 basis points.

Overall, operating profit was up 5 percent to R455 million and the company declared an interim gross cash dividend of 18 cents  per share for the interim period.

“The turnaround at Alexander Forbes Group is intensifying. We are back in the game but we still have much to do,” group chief executive Andrew Darfoor said.

“We have focused the business on our crystal-clear investment thesis of ‘cash flow plus growth’ and are beginning to see the benefits of this reflected in our performance across key group operating metrics.”

Alexander Forbes said its business model remained sensitive to factors in the markets it operates in — predominantly South Africa and select emerging markets — which continued to experience political and macroeconomic uncertainty.

– African News Agency (ANA)