Published, May 05, 2016 by Business Report at 07:30am
Empowerment company African Equity Empowerment Investments (AEEI) boosted earnings per share by 67 percent to 14.04 cents for the interim period to February as it continued to grow its acquisition footprint.
The group said revenue increased 18 percent to R305 million, mainly due to growth achieved from the marine and technology divisions, with profit before tax increasing by 61 percent to R74m compared with R46m in the last period.
Chief executive Khalid Abdulla said the results exceeded its expectations and defied an environment dominated by a weak rand and a slowdown in the economy.
Abdulla said the company’s diversifying strategy had paid off with the group shifting its focus to expanding in Africa and internationally.
“We have managed to achieve more than 40 percent return year on year to our shareholders. It is because of the strong relationships we have with our customers, efficient management and the systems we put in place that has allowed the company to perform so well over a long period of time,” Abdulla said.
The company, formerly known as Sekunjalo Investments, said it planned to continue to grow organically and make more acquisitions.
In February, AEEI completed a R125m deal to acquire a 25 percent plus one share stake in Saab Grintek Defence (SGD), the South African subsidiary of Swedish Defence and civil security company, Saab.
AEEI also bought shares in Sygnia Asset Management in October for R10m, the value of which has subsequently increased by 80 percent.