Picture: ISTOCK
Picture: ISTOCK

JSE-listed, black-owned investment holding company AfroCentric reported a 42.77% increase in normalised headline earnings per share to 44.03c for the year to end-June, with the company reporting normal organic growth, as well as healthy growth in client medical scheme memberships.

The group operating profits increased by 49.89% to R564.1m, and net profits before tax increased by 35.20% to R366.7m. The company said in a statement it had also met the profit undertakings set by Sanlam, which acquired an effective 28.7% interest in the group’s wholly owned subsidiary, Medscheme, for R703m.

This was largely due to healthy contributions from its WAD Holdings asset acquisitions, which includes courier company Pharmacy Direct, as well as growth in its client base. This would allow for joint development initiatives with Sanlam to be placed on a priority agenda for the ensuing year, AfroCentric said.

The company provides services to the public and private healthcare sectors, including through the Government Employee Medical Scheme. Other enterprises include a range of complementary services, which include information technology, fraud detection, transactional switching, specialised disease management, pharmaceutical wholesaling, and courier distribution services.

AfroCentric declared a final dividend of 14c per share, up 16.67% for the final period. It also released adjusted and re-stated results for prior years on Tuesday, to comply with misinterpreted accounting standards.

Interest accrued on the Sanlam conditional put option obligation of R24.96m, was accounted for in 2016 as an adjustment to equity, instead of being provided for through the statement of comprehensive income. The company said that from management’s analysis, the change to earnings per share and headline earnings per share was immaterial.

At 10.56am, AfroCentric’s share price was up 3.85% to R6.75.

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