Alexforbes celebrates 90 years with impressive annual results
Image: File
Alexforbes delivered a strong set of results for the year ended March 21, 2025 on the back of a strong investment performance and as the group celebrates its 90th anniversary this year.
Profit for the year from continuing operations improved 28% to R745 million, owing to a significant decrease in non-trading and capital items.
CEO Dawie de Villiers said, "What excites me about Alexforbes is the way we have punched above our weight for 90 years and the impact we've had on the financial services industry. We have influenced and led real change and continue to do so and most importantly, we secure the financial well-being of members in the retirement funds that we serve.
"With the vision of transforming clients' financial journeys, I am proud to share that we are making financial advice available to over 1 million members in our base. Across all ages, income bands and levels of wealth – every single one of our members can now access financial advice from Alexforbes to help them invest, plan and reach their investment destination," he said.
The integrated financial services, insurance and investment group said its operating income increased 13% to R4.4 billion owing to strong investment performance underpinned by positive market growth that resulted in higher average assets under management, inflationary increases from within its retirements and healthcare consulting client base and high client retention.
Operating income from retirement consulting increased 17% to R1.35bn owing to organic and acquisitive growth, while healthcare consulting reported a 2% increase in operating income to R371 million.
Investments reported a 12% increase in operating income to R1.8bn, underpinned by higher average assets under management that benefitted from new institutional inflows, an improvement in retailflows and strong market performance during the year
In addition, consolidation of acquisitions completed in previous financial years and higher than expected two-pot claims volumes also contributed to its top line.
Alexforbes said it has processed over 480 000 two-pot claims and made gross benefits payments of R7.7bn, with R2.1bn paid to the South African Revenue Services.
Total assets under management and administration increased 14% year on year to R599bn, while new institutional business flows for the year amounted to R35bn.
Alexforbes said over the past two years, institutional new business levels have hit record highs driven by a significant increase in platform assets due to the platform clients on-boarded from the Sanlam stand-alone retirement fund administration business operations acquisition.
Headline earnings per share from total operations increased 15% to 70.8 cents per share. Cash generated from continuing operations remains strong at R1.23bn, up 15% year on year.
Alexforbes said, "The group balance sheet remains financially robust,supported by the sustained cash flow generated from continuing operations, with a sound regulatory surpluscapital position of R1 348 million and available cash of R700 million. The group cover ratio of 2.3 times remains above the target solvency cover ratio of 1.2 times."
Alexforbes declared a gross final cash dividend of 33 cents per share (up from 30 cents per ordinary share in 2024), which when added to the interim dividend of 22c per share amounts to a total dividend of 55 cents per share for the year. The total annual dividend is up 10% year on year. In addition, the board declared a gross special dividend of 10 cents per share.
It said, "Our prospects into the next decade are directly influenced by our vision, which is to transform every client's financial journey - through inclusive advice, intelligent technology and impactful solutions that empowers each one of them to reach their investment destination."
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