Financial services group Alexforbes has announced a strong rise in full-year earnings, with headline earnings per share (HEPS) from continuing operations expected to increase by 5% to 15%. The growth is driven by higher average assets under management, strong market performance, and increased client retention in its retirement and healthcare consulting divisions. The company also benefited from the consolidation of past acquisitions and higher-than-expected claims volumes linked to South Africa’s new two-pot retirement system.
Despite these gains, Alexforbes faced rising expenses due to changes in property lease accounting, acquisition costs, and additional spending on implementing the two-pot system. However, operating profit before non-trading items is still projected to grow by 12% to 16%. The previous year’s results were impacted by a R90 million impairment charge, but this year, the company has seen a significant financial boost from a legal victory in a long-running insurance dispute.
Alexforbes successfully won a case against an insurer that had refused to honour a claim related to a UK subsidiary sold in 2012. This resulted in a R152 million profit in discontinued operations and an additional R34 million in interest income. The group plans to continue pursuing further claims through arbitration. With stable market conditions and strategic growth initiatives, Alexforbes remains on a positive trajectory, reinforcing its position as a key player in the financial services sector.