Wrap Text
Extract from the interim results for the six months ended 30 September 2025 and interim cash dividend declaration
Alexander Forbes Group Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration Number: 2006/025226/06)
JSE Share Code: AFH and ISIN: ZAE000191516
(Alexforbes or the company or the group)
EXTRACT FROM THE INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2025 AND
INTERIM CASH DIVIDEND DECLARATION
Alexforbes reports financial results for the six months ended 30 September 2025 (the period or current period) delivering consistent performance.
Highlights
- Operating income up 9% to R2 329 million
- Normalised profit from operations (before non-trading and capital items) up 18% to R446 million
- Headline earnings per share from total operations up 17% to 33.2 cents per share
- Normalised headline earnings per share up 41% to 35.2 cents per share
- Regulatory surplus of R1 065 million, with a capital cover ratio of 2.1 times, comfortably above the target solvency ratio of 1.2 times
- Interim cash dividend declared of 24 cents per share, up 9%
- Total active members under administration up 12% to 1.2 million
- Closing total assets(1) increased 23% year-on-year to R696 billion
Chief executive officer, Dawie de Villiers, commented: 'We have focused on the implementation of our new operating model, which I believe marks an inflection
point in our journey. Our core business units are now strategically positioned to capture growth opportunities across their market segments. We have brought
stability and confidence to our clients by anchoring our propositions on the delivery of best advice. Our advice allays fears, creates clarity of thought and helps our
clients make better decisions. It's the role that Alexforbes has played for 90 years and will continue to do so.'
1 Total assets include assets under administration (AuA) and assets under management (AuM).
Financial highlights
Unaudited six months ended
30 September
2025/2024
In millions of South African rands (Rm) % change 2025 2024 2023
Continuing operations
Operating income(A) 9 2 329 2 140 1 911
Profit from operations (before non-trading and capital items) (1) 443 447 394
Normalised profit from operations (before non-trading and
capital items) 18 446 377 347
Cost-to-income ratio(B) (percentage) 190 bps 81.0 79.1 79.4
Normalised cost-to-income ratio (percentage) (150 bps) 80.9 82.4 81.8
Profit for the period (9) 335 367 339
Cash generated from operations 29 482 373 446
Basic earnings per share (cents) (9) 26.1 28.7 27.0
Headline earnings per share (cents) (9) 26.1 28.7 27.0
Discontinued operations
Loss from operations (before non-trading and capital items) 42 (7) (12) (11)
Profit/(loss) from discontinued operations >100 89 (4) 9
Total group
Basic earnings per share (cents) 17 33.2 28.4 27.7
Headline earnings per share (cents) 17 33.2 28.4 27.7
Normalised headline earnings per share (cents) 41 35.2 25.0 26.4
Interim dividend per share (cents) 9 24 22 20
A. Operating income represents revenue net of direct expenses.
B. Cost-to-income ratio is calculated as a percentage of operating expenses (before non-trading and capital items) and adjusted for other income, over
operating income.
Financial performance
Operating income increased by 9% to R2 329 million, supported by higher average assets under management, positive investment performance, inflationary
increases within our retirements client base, strong client retention and robust new business flows across both the investments and retail segments.
Operating expenses of R1 904 million increased 10% year-on-year influenced by two significant factors: the cash settlement of a portion of the long-term incentive
plan awards expensed in the current period that was previously equity settled and the prior period IFRS 16 lease adjustment following the renewal of our head
office lease in September 2024. Excluding these items, underlying operating expense growth was contained at 3% year-on-year.
Normalised profit from operations, excluding the IFRS 16 adjustment, increased 18% to R446 million. Including the adjustment, profit from operations (before
non-trading and capital items) was R443 million, down 1% year-on-year.
Headline earnings per share from total operations increased 17% to 33.2 cents per share. This increase reflects the financial performance of the discontinued
operations, that includes the final settlement of R93 million pertaining to phase two of the ETV liability following a mutual settlement agreement.
The group balance sheet remains strong, supported by the sustained cash flow generated from continuing operations. We maintain a sound regulatory surplus
capital position of R1 065 million and available cash of R466 million, with a group cover ratio of 2.1 times - well above our target solvency ratio of 1.2 times.
A gross interim cash dividend of 24 cents per share has been declared, up 9% year-on-year.
Interim cash dividend declaration
Alexforbes's dividend policy is set at a target range of 1.0 to 1.5 times earnings cover. The dividend is set with reference to normalised headline earnings.
An interim dividend declaration has been considered by the board, taking into account the group's current and projected regulatory position, the available cash in
the group as well as the group's high cash generation.
The board has declared a gross interim cash dividend of 24 cents per share for the period ended 30 September 2025 (2024: 22 cents per share). The board believes
the cash and capital position, after the payment of the interim dividend, will continue to provide sufficient liquidity and capital strength.
The interim dividend has been declared from income reserves.
A dividend withholding tax (DWT) of 20% will apply to all shareholders who are not exempt from the dividend withholding tax, or who are entitled to a reduced
rate in terms of the applicable double taxation agreement. For South African shareholders subject to DWT, the interim cash dividend net of 20% DWT will be 19.2
cents per share (2024: 17.6 cents per share).
The number of issued ordinary shares at the date of declaration is 1 299 508 372. The tax reference number of Alexander Forbes Group Holdings Limited is
9404921158.
The directors are satisfied with the solvency and liquidity test as required in terms of section 4(1) of the Companies Act 71 of 2008.
The salient dates for the interim dividend are as follows:
Declaration date Monday 1 December 2025
Last day of trade to receive a dividend Tuesday 6 January 2026
Shares commence trading 'ex' dividend Wednesday 7 January 2026
Record date Friday 9 January 2026
Payment date Monday 12 January 2026
Share certificates may not be dematerialised or rematerialised between Wednesday 7 January 2026 and Friday 9 January 2026, both days inclusive.
Prospects
Alexforbes charts a clear course for growth and impact
Our purpose remains unwavering: to pioneer insight that delivers advice and solutions that impact people's lives. Our prospects are anchored in our ability to do
so. As we look ahead, we see opportunity in a changing economic landscape, a dynamic business environment, and a future where sustainability and simplicity
define success.
A new economic horizon
South Africa's move toward a 3% inflation target signals a structural shift that promises long-term benefits: lower borrowing costs, improved valuations and
enhanced currency stability. With repo rates expected to settle between 5.5% and 6%, this environment creates tailwinds for equities and property while aligning
the country with global standards.
For Alexforbes, this transition brings both challenges and opportunities. Slower wage growth may temper contributions and AuM growth, while lower nominal
returns could pressure investment revenues. Yet, these dynamics open doors for innovation - particularly in financial advice, drawdown strategies and living
annuity solutions.
Shaping tomorrow with confidence
Our strategy positions Alexforbes for sustainable growth:
Alexforbes as an investment destination
Our campaign to position Alexforbes Investments as an investment destination continues to gain traction. By shifting perceptions, together with our objective of
delivering superior investment returns, we aim to win a greater share of assets from clients across institutional and retail segments.
Retail acceleration
The Alexforbes retail evolution is accelerating with increased member engagement within our corporate base, rapid digital enablement of our advisers,
innovative solutions in development and a strong pipeline of opportunities in the independent financial adviser (IFA) segment.
Driving sustainability and impact
Alexforbes Impact Advisory (together with the Impact Academy) is shaping ESG and sustainability practices for retirement funds and corporates. The
acquisition of the award-winning Paragon Impact platform strengthens our offering and creates new opportunities, including the launch of SDG Impact
Awards and an associated impact ETF in the first half of 2026.
We continue to influence sustainability-focused regulatory reform through collaboration with the CIPC and dtic, following our inaugural national sustainability
reporting survey. Alexforbes is strategically positioned to help clients transition to a sustainable future while benefiting from growing demand for simplified,
expert-led solutions and advice to help navigate the complex and evolving sustainability landscape.
Unifying employee benefits through Alexforbes One
Alexforbes One integrates retirement, healthcare, sustainability and investments into a single umbrella solution, enabling holistic advice for employers and
members. This unique umbrella fund solution enables internal and external advisers to apply their best advice holistically to employers and members. The
launch of Alexforbes One has been well received and we are building a strong pipeline of prospects.
Modernising fund administration for operational efficiency
Alexforbes has initiated a process to decommission legacy fund administration platforms and to consolidate its administration offering into a single system
across South Africa, Namibia and Botswana. This is expected to enhance client experience, deliver cost efficiencies and improve scalability over the medium-to
long-term. The multi-year project, launched mid-2025, is progressing on schedule.
Navigating the waters ahead
While the outlook is positive, we remain vigilant to potential headwinds:
- Market volatility and geopolitical uncertainty could impact investment flows.
- Regulatory complexity, compliance and cybersecurity risks require ongoing investment in systems and processes.
- Economic pressures may affect discretionary savings and employer contributions.
Our diversified business model, strong capital position and disciplined cost management provide resilience and flexibility to adapt. Our purpose-driven
strategy, trusted brand and talented people position us to deliver meaningful impact for clients and sustainable value for stakeholders. We are committed to
shaping a future where financial advice empowers better outcomes for all.
About this announcement
This results announcement is the responsibility of the directors of the group. Shareholders are advised that this results announcement represents a summary of
the information contained in the full unaudited interim condensed consolidated results for the six months ended 30 September 2025 (the interim results) and
does not contain full details. The interim results were approved by the board of directors on 1 December 2025 and the information in this announcement has
been correctly extracted from the interim results.
The interim results are published and available through the JSE cloudlink: https://senspdf.jse.co.za/documents/2025/JSE/ISSE/AFH/AFHDec2025.pdf
The interim results are also available on the Alexforbes website: https://investors.alexforbes.com/financial-results
As this results announcement does not contain full details, any investment decisions by investors and/or shareholders should be based on a consideration of the
interim results as a whole and investors and/or shareholders are encouraged to review the interim results, which are available as set out above. Any reference to
future financial performance or any forecast financial information included in this announcement has not been separately reviewed, audited or reported on by
the group's external auditors.
On behalf of the board of directors
Kuseni Dlamini Dawie de Villiers
Chair Chief Executive Officer
1 December 2025
Sandton
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 01-12-2025 08:00:00
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