Peregrine protects shareholders from fall in earnings
Financial services group Peregrine cushioned its shareholders from a 14% drop in aftertax profit by maintaining its dividend at R1.55.
Peregrine reported on Wednesday morning that revenue for the year to end-March declined 10% to R2.47bn and aftertax profit by 14% to R703m.
The group’s share of its profit from Guernsey-based Stenham halved to R74m from R144m, partly due to the rand strengthening against the pound, but also due to settling a claim the results did not detail.
"Excluding the once-off costs of settling a claim, which arose in prior periods, Stenham Asset Management performed reasonably with revenues in sterling terms having decreased primarily due to decreased performance fees. Despite net outflows amounting to $44m during the period under review, total assets under management and advice increased to $3.6bn from $3.4bn," Peregrine said.
Assets under management at Citadel, the group’s wealth management business, declined slightly to R44.6bn from R44.9bn.
Due to significantly lower performance fees earned, Citadel’s headline earnings for the 12 months were down 5% to R174m from R183m.
"The client retention rate in the traditional business amounts to 97%," Peregrine said.
Peregrine Capital increased earnings by 5% on a larger asset base, which grew to R8.2bn from R7.3bn.