The payout is due to the resolution of a long-standing enhanced transfer value liability matter
09 June 2025 - 09:10
by Jacqueline Mackenzie
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Alexforbes CEO Dawie de Villiers. Picture: SUPPLIED
Financial services group Alexforbes has reported higher full-year earnings and declared a special dividend after the receipt of proceeds after the successful litigation of phase 1 of the enhanced transfer value (ETV) liability matter.
The group on Monday reported operating income rose 13% in the year to end-March to R4.4bn, while headline earnings per share (HEPS) from total operations was up 15% to 70.8c.
A final cash dividend of 33c per share was declared, up 10% from a year ago, taking the annual dividend to 55c. A special cash dividend of 10c per share was also declared.
“The receipt of proceeds after the successful litigation of phase one of the ETV liability matter is the basis for the board’s decision to declare this special dividend,” it said.
Business Day TV took a closer look with the group's CEO, Dawie de Villiers.
In 2021 the group provided for a warrantee claim from a known error that required redress, relating to a UK subsidiary sold in 2012. That provision and subsequent payment of the claim by the group were referred to as the ETV liability matter in previous financial disclosures.
The provision was made due to one insurer in the group’s layered insurance programme declining to honour their insurance commitment.
Alexforbes pursued a legal process against the insurer in two phases, the first of which was ruled in its favour in April. The award, which included both interest and costs, has resulted in a profit being recognised in discontinued operations amounting to R152m, plus interest of R34m being recognised in continuing operations in the current year.
The group will continue to pursue the remainder of the claim through arbitration, it said.
CEO Dawie de Villiers said the group would make financial advice available to more than 1-million members in its base.
“Across all ages, income bands and levels of wealth — every single one of our members can now access financial advice from Alexforbes,” he said.
This has been achieved through a mix of growing the group’s adviser footprint, the use of enabling technology and scaling its automated advice platform.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Alexforbes declares special dividend
The payout is due to the resolution of a long-standing enhanced transfer value liability matter
Financial services group Alexforbes has reported higher full-year earnings and declared a special dividend after the receipt of proceeds after the successful litigation of phase 1 of the enhanced transfer value (ETV) liability matter.
The group on Monday reported operating income rose 13% in the year to end-March to R4.4bn, while headline earnings per share (HEPS) from total operations was up 15% to 70.8c.
A final cash dividend of 33c per share was declared, up 10% from a year ago, taking the annual dividend to 55c. A special cash dividend of 10c per share was also declared.
“The receipt of proceeds after the successful litigation of phase one of the ETV liability matter is the basis for the board’s decision to declare this special dividend,” it said.
Business Day TV took a closer look with the group's CEO, Dawie de Villiers.
In 2021 the group provided for a warrantee claim from a known error that required redress, relating to a UK subsidiary sold in 2012. That provision and subsequent payment of the claim by the group were referred to as the ETV liability matter in previous financial disclosures.
The provision was made due to one insurer in the group’s layered insurance programme declining to honour their insurance commitment.
Alexforbes pursued a legal process against the insurer in two phases, the first of which was ruled in its favour in April. The award, which included both interest and costs, has resulted in a profit being recognised in discontinued operations amounting to R152m, plus interest of R34m being recognised in continuing operations in the current year.
The group will continue to pursue the remainder of the claim through arbitration, it said.
CEO Dawie de Villiers said the group would make financial advice available to more than 1-million members in its base.
“Across all ages, income bands and levels of wealth — every single one of our members can now access financial advice from Alexforbes,” he said.
This has been achieved through a mix of growing the group’s adviser footprint, the use of enabling technology and scaling its automated advice platform.
mackenziej@arena.africa
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