Latest news with #AdrianGore
Yahoo
28-05-2025
- Business
- Yahoo
Institutional investors are Discovery Limited's (JSE:DSY) biggest bettors and were rewarded after last week's R4.8b market cap gain
Given the large stake in the stock by institutions, Discovery's stock price might be vulnerable to their trading decisions The top 7 shareholders own 52% of the company Recent sales by insiders AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. If you want to know who really controls Discovery Limited (JSE:DSY), then you'll have to look at the makeup of its share registry. With 50% stake, institutions possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company. And as as result, institutional investors reaped the most rewards after the company's stock price gained 3.5% last week. One-year return to shareholders is currently 88% and last week's gain was the icing on the cake. In the chart below, we zoom in on the different ownership groups of Discovery. See our latest analysis for Discovery Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. Discovery already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Discovery's historic earnings and revenue below, but keep in mind there's always more to the story. Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don't have a meaningful investment in Discovery. The company's largest shareholder is Public Investment Corporation Limited, with ownership of 13%. In comparison, the second and third largest shareholders hold about 13% and 7.7% of the stock. Adrian Gore, who is the second-largest shareholder, also happens to hold the title of Chief Executive Officer. We did some more digging and found that 7 of the top shareholders account for roughly 52% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat. While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. Our information suggests that insiders maintain a significant holding in Discovery Limited. Insiders own R23b worth of shares in the R143b company. That's quite meaningful. Most would be pleased to see the board is investing alongside them. You may wish to access this free chart showing recent trading by insiders. With a 26% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Discovery. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. With an ownership of 7.7%, private equity firms are in a position to play a role in shaping corporate strategy with a focus on value creation. Some investors might be encouraged by this, since private equity are sometimes able to encourage strategies that help the market see the value in the company. Alternatively, those holders might be exiting the investment after taking it public. It's always worth thinking about the different groups who own shares in a company. But to understand Discovery better, we need to consider many other factors. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Daily Maverick
15-05-2025
- Business
- Daily Maverick
Discovery Green, Sasol launch Ampli Energy to widen renewable offerings for SA business
Ampli is the latest chapter in South Africa's renewable energy drive, which has gathered pace in recent years after a long period of government inertia. Discovery Green and petrochemicals giant Sasol launched a new company on Thursday, 15 May 2025 — Ampli Energy, which aims to make renewable energy more accessible and less costly for small, medium and micro enterprises (SMMEs). Utility costs from Eskom, which provides about 90% of its power from coal-fired plants, are surging and South Africa needs to slash its carbon emissions to meet its commitments under the Paris Accord and remain competitive in a global economy that is putting a premium on going green. It is against this backdrop that Ampli Energy has been spawned to help South African business navigate the swirling currents of the green energy transition to contain the pace of human-caused climate change. 'We are on the cusp of an energy revolution,' Discovery CEO Adrian Gore said at the launch Ampli. 'SMMEs are the engine of the economy. Big businesses like ours don't create jobs.' Discovery and Sasol say that the new offering will be a 'market-first, no-fee, no-risk, no-hassle, month-to-month renewable energy product for South African businesses of all sizes'. 'Ampli Energy pays businesses monthly cash back to replace their electricity consumption with clean, grid-delivered renewable energy,' the companies said in a statement. Andre Nepgen, the head of Discovery Green, told Daily Maverick that the cash paid back to businesses came from the difference in their overall utility bill and the cheaper costs of renewable energy. The savings were divided between clients and Discovery Green, which was how it made its money. The product would be delivered through the national grid via wheeling, and Ampli itself required no infrastructure. 'Through simple, month-to-month membership any business anywhere in the country can now replace the majority of its electricity with renewable energy already flowing through the national grid, reducing carbon emissions without upfront capital requirements, installations or long-term contracts,' Discovery Green and Sasol said. 'Ampli Energy pays businesses to run on renewable energy, with monthly cash back paid directly into their bank accounts.' Ampli is the latest chapter in South Africa's renewable energy drive, which has gathered pace in recent years after a long period of government inertia. What this means for SMEs Lower electricity costs Businesses can reduce their utility bills without needing to install solar panels or other infrastructure. Monthly cashback is paid based on the savings from cheaper renewable energy. No upfront investment or long-term lock-in There's no need for capital outlay, long-term contracts, or installation hassle. This removes a key barrier that has stopped many SMMEs from going green. Greater energy access and flexibility The product is national — it can be used by businesses anywhere in South Africa as long as they're connected to the grid. The month-to-month nature gives flexibility in tough economic times. 'Ampli Energy is revolutionary. It represents a sea change in green energy,' said Minister of Electricity Kgosientsho Ramokgopa, who pointedly attended the launch. Ramokgopa said South Africa currently got 23% of its energy from renewables — most of that is from private-sector initiatives off-grid — and the target was to get that to 50% by the middle of the next decade. Ramokgopa's embrace of renewables remains in sharp contrast with Minerals and Petroleum Resources Minister Gwede Mantashe, who proclaimed in March that 'King Coal is back!' at the launch of a new colliery. 'Businesses that previously lacked the capital or capacity to invest in renewable infrastructure can now access clean energy through wheeling arrangements,' said Sasol president and CEO Simon Baloyi. Sasol's involvement in Ampli is also a boost to the attempts by Africa's second biggest carbon emitter after Eskom to coat itself in a greener sheen. South Africa is blessed with an abundance of wind and sun, and while it still has coal galore, the writing is on the wall for fossil fuel.
The South African
14-05-2025
- Business
- The South African
Discovery's wake-up call for South Africans without medical aid
Discovery warns that South Africans without medical aid will face significant penalties for joining later in life. This is the message from CEO and founder, Adrian Gore, at Discovery's interim results announcement back in March. Many South Africans without medical aid say they can simply no longer afford it, due to the rising cost of living. Nevertheless, the company insists those who think they can just join later in life when they are no longer healthy need to be aware of the penalties for such actions. However, it's no wonder there are more South Africans without medical aid than ever before. Even the CEO himself bemoaned the trajectory of medical aid inflation, which saw increases earlier this year of between 8 to 11%. And it is having an impact on the average age of clients. As a result, the average age of Discovery members has risen from 32 back 2008, to 38 in 2024. Adrian Gore, CEO of Discovery. Image: Discovery However, according to Statista, as of 2023, a mere 15% of individuals in South Africa can afford and have medical aid. This number has been on the steady decline ever since. Meanwhile, the vast majority of elderly residents rely on SASSA grants to survive financially and see medical aid as an expensive luxury they can do without. Nevertheless, Gore says more young people are not taking or dropping medical aid while they're still healthy. They are choosing to only get medical aid when they are no longer healthy. As a result, the company says it is burdened with an older clientele. And a disproportionate number of chronic illness claims is what is driving up medical aid prices for everyone. Furthermore, as a potential cure-all for South Africans without medical aid, Gore questioned the 'egalitarian' rules of medical aids. Instead, he wants stricter rules for anyone who stays out of the 'system,' that sees them hit with bigger penalties later in life. As a result, medical aid coverage will become more expensive as you get older. And anything like a major injury/surgery in the interim can become financially crippling. Late joiner fees and waiting periods are the means medical aid firms have to try and control misuse. Image: File Industry experts stress that South Africans should join a medical scheme as soon as they start working and/or before the age of 35. They say starting early should be seen as an investment into the future of your health, even if you're still young and healthy. It is just as important as retirement savings. Late joiner fees and waiting periods are designed to prevent misuse of the medical scheme system. And stop those who may try to exit and enter the healthcare system as and when they need to. These late joiner penalties are based on the individual's age when joining the scheme and the number of years they have not been a member. The penalty is generally a percentage of the base contribution rate and can add as much as 75% to the monthly medical aid contribution. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
Zawya
05-03-2025
- Business
- Zawya
South Africa: Discovery's financial results reveal a 34% surge in earnings, showcasing global growth
Discovery today released its interim financial results for the six months ending 31 December 2024, highlighting strong performance and sustained growth. Group chief executive officer Adrian Gore attributed the success to strategic investments in global expansion and new ventures, particularly Discovery Bank, which achieved monthly profitability in December ahead of schedule. With its two key composites—Vitality and Discovery South Africa—well-positioned for scaled organic growth, the Group is entering a new phase of focused execution. 'Following the emergence from a period of sustained investment, we have seen a strong performance, which is expected to result in further growth in profit from operations in 2025, exceeding our medium-term ambition of 15% to 20%, driven, in particular, by a second-half recovery in the UK," Gore said. The period delivered growth in normalised operating profit, up 27% to R7,020m, headline earnings, up 34% to R4,267m and normalised headline earnings, up 34% to R4,350m. The Group's embedded value increased to R120bn and the positive contribution from experience variances over the period reflected the competitive dynamics of the Group's Shared-value Insurance model. The key financial highlights include: Discovery South Africa: Normalised operating profit increased 27% to R5,520m as the composite focused on driving quality new business at appropriate margins, with new business increasing 6%, excluding the prior period take-on of the Sasolmed closed medical scheme. Discovery Bank: Delivered a 42% increase in total revenues and has now achieved monthly operational profitability with continued excellent performance across all key metrics. It is well positioned to leverage its scale, data and capabilities to drive growth across the composite. Discovery Health: The administrator of Discovery Health Medical Scheme and 18 closed medical schemes delivered robust earnings growth, while continuing strategic investments in technology, innovation, artificial intelligence, and personalised healthcare. New business increased 9%, excluding the Sasolmed closed medical scheme take-on in the prior period (decreased 31%, including Sasolmed). Discovery Life: Delivered strong earnings and cash generation, supported by positive claims experience, while maintaining its market-leading retail market share and new business margins. Group life new business, which tends to be volatile, declined over the period. Discovery Invest: Delivered significant earnings growth, benefitting from strong market performance and some one-off gains for the period. Discovery Insure: Delivered an excellent recovery in operating margin, and also benefited from benign weather conditions. Vitality: The composite's normalised operating profit increased by 27% to R1,500m, and new business API increased 8%. VitalityHealth: Operating profit increased 15% to £25.9m (14% to R599m). The business has successfully actioned price adjustments over the past 18 months to mitigate increased private medical insurance utilisation, with the strong retention of in-force business resulting in a 16% increase in earned premiums. VitalityLife: Operating profit increased by 8% to £14.1m (8% to R327m). The business utilised its advanced price optimisation to deliver a 19% increase in new business Annualised Premium Income of high quality (39% excluding automatic contribution increases), despite a stagnant UK market. Vitality Network: Operating profit increased by 20% to US$18.9m (15% to R339m), as margins increased from 31% to 35%. Membership grew by 26% to 6.2 million, demonstrating the global relevance of the Shared-value Insurance model. The Group's share of Ping An Health Insurance's after-tax operating profit increased by 23% to R424m, following strong gains from Chinese bond and equity market movements in the period and continued operating delivery. Within VHI Other, Vitality USA acquired WellSpark, further progressing its expansion from its traditional focus on the employee wellness market towards the significantly larger addressable market of integrated digital health and care. Amplify Health successfully deployed nine health tech solutions across multiple Asia-pacific markets. Gore highlighted that Discovery's growth strategy is based on the efficacy, repeatability, and scalability of its model through organic growth and global partnerships. The Group's strong performance demonstrates the effective deployment of the model and its applicability across the different industries and markets. Driving sustainable growth The model's evolution to hyper-personalisation, leveraging the Group's data and technology assets, will continue to improve key value drivers. The Vitality AI platform and its capabilities will allow greater and more precise understanding of people's health risks and determine the exact actions to improve health outcomes, quantifying the impact on health and mortality. Gore further emphasised that the Group demonstrated continued financial resilience and remains well positioned to manage potential volatility in the current macro-environment. He said the two powerful and focused composites – Discovery South Africa and Vitality – and the strong platforms in each, are resulting in growth in earnings, cash generation, and return on equity, as well as lower leverage. In line with this, the Group has declared its interim ordinary dividends for the period at 87 cents per share, consistent with the growth in normalised headline earnings. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
Bloomberg
04-03-2025
- Business
- Bloomberg
Discovery CEO: AGOA 'Critical' for South African Growth
Donald Trump's spat with South Africa could thwart the extension of the Africa Growth and Opportunity Act which grants South Africa preferential access to the US, Discovery CEO Adrian Gore warns. He spoke to Bloomberg's Jennifer Zabasajja. (Source: Bloomberg)
