Vunani shares plunge 21.3% despite surge in annual profits
CEO Ethan Dube says Vunani is ‘positioned to take advantage of the continued recovery in business and consumer confidence’ to grow the business
Shares in Vunani fell 21.3% to R2 on Thursday despite its announcement that profits nearly doubled in the year to end-February. Thanks in part to better revenue from the group’s commodities trading and advisory services segments, profits rose to R90.3m, from R45.6m, as revenue increased 21% to R425.3m. The commodities trading segment contributed R9.7m in profit, from R6.1m previously, due to “increased coal processing activities”. The the small-cap financial services group’s fund management business, which includes investments in Vunani Fund Managers, Purpose Vunani Asset Management and Alliance Capital, grew profits to R7.9m from R4.3m previously. The asset administration division, which includes investments in Fairheads Benefit Services, doubled profit to R13.4m as Fairheads’s assets under administration grew slightly to R6.3bn. The advisory services segment made a profit of R4.7m, from a R1.5m loss previously. However, the institutional securities broking business contributed l...
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