Abil offshoot African Phoenix turns a profit on its continuing operations
The vehicle for African Bank’s ‘bad’ assets looks to be turning things around, and its share price is up 40% since February
African Phoenix, which rose out of the ashes of Abil in February, reported it turned to a profit for continuing operations for the year to end-September.Headline earnings per share (HEPS) for continuing operations was 13.7c from the prior year’s headline loss of 6.5c, its results released on Friday morning saidBut its headline earnings per share (HEPS) for both continuing and discontinued operations of 13c was nearly a third of the prior year’s 34c.Following the separation of the "good bank" portion of Abil which has resumed trading as African Bank, African Phoenix was left with Standard General Insurance Company (Stangen) as its sole trading subsidiary.It also inherited a portion of the "bad bank" part of Abil, which is now named Residual Debt Services (RDS), and furniture chain Ellerines.The group reported an after-tax profit of R186m, which was mainly from Stangen, but also from a R48m "fair value recognition" of the RDS bonds it owns and R45m from "fully impaired claims" against...
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