Efficient Group forecasts strong increase in headline earnings a share
The expectation of a rise of between 76.9% and 91.9% in HEPS is primarily related to the acquisition of the Select Manager Proprietary group of companies
The share price of diversified financial services group Efficient Group climbed more than 5% on Monday, after the company said it expected headline earnings per share (HEPS) to increase by at least 76.9% for the year to end-August. The company said HEPS was expected to be between 73.48c and 79.7c, or 76.9% and 91.9% higher, due primarily to re-measurement of the forward purchase liability and related to the acquisition of Select Manager Proprietary group of companies. Efficient’s acquisition of these companies, that included Select Manager, Stead Wealth and Exceed Asset Management, were concluded during the 2015 financial year. Due to this, cash generated from operations was expected to be between 68c and 70c a share for the period, reflecting a decrease of between 4.4% and 1.4%, the company said. Earnings a share was expected to be between 57.40c and 63.64c, reflecting an increase of between 38.2% and 53.2% compared with the previous period, the company said. At 10.37am the company...
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