Message from the CEO
REVIEWED CONDENSED CONSOLIDATED PROVISIONAL RESULTS FOR YEAR ENDED
31 MARCH 2018
The Group proved resilient in a demanding environment, characterised by global and local political uncertainty and market volatility, with an encouraging set of results for the financial year to end March 2018.
We are exceptionally proud to celebrate our 20th anniversary this year. The official listing date was 10 June 1998 and the company was well received by the market. Business media reported on the day of the listing: “The rate of growth in turnover and bottom line has also been astounding with Peregrine's net profit of R25 000 in the year to March 1996 growing to R258 000 in 1997 and R7,7 million in 1998.” [www.iol.co.za]
As at 31 March 2018, the Group had a turnover of over R500 million.
As with all companies with an established history, we have experienced highs and lows but looking back on our set of achievements I must acknowledge the exceptional group of people that made the Group what it is today.
Against this background and looking back at the early days I am particularly pleased with the results announced for the past financial year.
Segmental headline earnings related to the Group’s operating companies increased by 7% to R470 million while annuity segmental earnings relating to the operating businesses increased by 6% to R362 million.
The unbundling process of last year – which resulted in a separate listing for previously wholly owned subsidiary Sandown Capital – is now finalised and this and other transactions planned will reduce the Group’s exposure to volatility and risk and ensure low capital requirements. In view of this we expect the Group’s return on equity to increase significantly. We will continue to look for appropriate further acquisitions that are aligned with the highly cash generative profile of the companies in the Group and that will benefit the streamlined Group structure.
Although the business mood in South Africa has improved since the election of Cyril Ramaphosa as President, the economy continues to struggle and many challenges remain. These challenges, coupled with continuing global geopolitical risk, create a demanding business environment. However, our strong focus on cost control and building the operating companies in the Group as well as seeking new opportunities to enhance the Group’s overall offering, should secure growth going forward and drive good returns in the coming years.
Click here to view the reviewed condensed consolidated provisional results for year ended 31 March 2018.