Investec. Picture: MARTIN RHODES
Investec. Picture: MARTIN RHODES

Financial services group Investec, which recently spun off and separately listed its asset management arm, warned difficult market conditions could result in profit almost halving in its year to end-March.

Headline earnings per share (Heps) is expected to fall by between 41% and 46% from the prior year, with Investec expecting the coronavirus to weigh on its fourth quarter performance.

Heps strips out one-off items to give a better indication of underlying performance.

Group basic earnings per share are expected to rise by between 135% and 148%, with the group recognising a net gain of £837m (R16.7bn) due to the demerger and listing of Ninety One.

Investec spun off a separately listed Ninety One in March, proceeding with the move despite significant volatility on global markets.

Investec, however, shelved plans to sell a 10% stake in the group.

“Investec has delivered a resilient performance in challenging market conditions,” said CEO Fani Titi.

“We have also made notable progress in the simplification of the business and have continued to invest in our platforms to achieve sustainable growth for the long term,” he said. “We remain optimistic about our longer-term potential.”

In morning trade on Friday Investec’s share price was up 3.32% to R28.01, having lost 51.50% of its value so far in 2020. Over the same period, the JSE’s financial index has fallen 42.35%.

Ninety One was up 6.31% to R33, having started trading at R55 on March 16.