Efficient Group’s HEPS surge after cancelling profit-share scheme
The company had incurred a R317m expense in its year to end-August 2018
Small-cap financial services company Efficient Group, which may delist from the JSE amid a buyout offer, said on Friday it would return to profit in its year to end-August. This is after the company recovered from cancellation fees from bringing its investment unit in-house.
Headline earnings per share (HEPS) were expected to be in a range of 30.89c to 34.24c, compared to a headline loss per share of 318.18c previously.
Recurring HEPS — which excludes the effects of the cancellation fees — is expected to rise by as much as 116% from the prior comparative period, the company said.
The company suffered its first loss since 2012 in the previous financial year, paying R317m in cancellation fees as it ended profit-sharing arrangement with its investment business, which was established in 2013.
The joint management and profit-sharing agreement with Robert Walton, the founder of the investment business called Efficient Invest Companies saw Walton and his team earn 66% of the unit’s profit before tax.
It had also incurred cancellation fees of R12m in its year to end August 2019.
Efficient may soon de-list from the JSE, having said in July that Apis Growth 12, a company incorporated in Mauritius, had submitted a nonbinding expression of interest to buy all of its issued ordinary shares.
This does not include the shares held by Sasfin Wealth, TBI Strategic Partners, Grondputs Beleggings, Heiko Weidhase and family, Dawid Roodt and Stefanes Booysen and family.
The company said in October negotiations were still in progress.
Efficient Group's share price was unchanged at R4 on Friday afternoon, having fallen 14.89% so far in 2019.