Alexforbes reported a 15% increase in Headline Earnings Per Share (HEPS) to 70.8 cents per share for the year ended 31 March 2025, driven by the strong performance of its discontinued operations. HEPS, recognised as South Africa’s most accurate measure of profitability, underscores the company’s sustained financial strength.
Dawie de Villiers, Chief Executive Officer of Alexforbes, reflected on the company’s legacy, stating: “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.”
The company’s operating income grew by 13% to R4,397 million, supported by robust investment performance, higher average assets under management, and inflationary adjustments within its retirement and healthcare consulting client base.
Additionally, strong client retention, the consolidation of prior-year acquisitions, and higher-than-anticipated two-pot retirement system claims contributed to this growth.
Operating expenses increased by 11% to R3,538 million, primarily due to changes in property lease accounting under IFRS 16, the full consolidation of recent acquisitions, and costs linked to the implementation of the two-pot retirement system. Excluding these factors, organic expense growth remained at a manageable 6% year-on-year.
Despite these cost pressures, profit from operations rose by 14% to R911 million, demonstrating the company’s ability to maintain profitability while investing in strategic initiatives. Cash generated from continuing operations remained strong at R1,230 million, reflecting a 15% year-on-year increase.
Profit from continuing operations surged by 28% to R745 million, benefiting from a significant reduction in non-trading and capital items compared to the prior year, which had included one-off impairments.
The group’s balance sheet remains robust, with a regulatory surplus capital position of R1,348 million and available cash reserves of R700 million. Alexforbes also maintains a healthy solvency cover ratio of 2.3 times, well above its target of 1.2 times.
In a move to reward shareholders, the board declared a final gross cash dividend of 33 cents per share, bringing the total annual dividend to 55 cents per share” a 10% increase over the previous year.
Additionally, shareholders will benefit from a special dividend of 10 cents per share, further underscoring the company’s strong financial position and commitment to delivering value.
With a 90-year legacy of innovation and leadership in South Africa’s financial services sector, Alexforbes continues to drive meaningful change while ensuring the financial security of its members and delivering sustainable growth for stakeholders.
