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ANCHOR GROUP LIMITED - Further trading statement for the six months ended 30 June 2015

Release Date: 13/07/2015 07:59
Code(s): ACG     PDF:  
Wrap Text
Further trading statement for the six months ended 30 June 2015

ANCHOR GROUP LIMITED
(formerly Andotorque Investments Proprietary Limited)
(Incorporated in the Republic of South Africa)
(Registration number 2009/005413/06)
(“Anchor” or “the Company”)
ISIN Code: ZAE000193389 JSE Code: ACG

FURTHER TRADING STATEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2015


In terms of the Listings Requirements of JSE Limited, companies are required to
publish a trading statement as soon as they become reasonably certain that the
financial results for the period to be reported on will differ by more than 20% from
that of the previous corresponding period.

Further to the initial trading statement issued on 10 March 2015, a review of the
financial results for the six months ended 30 June 2015 by management has
indicated that:

-   Earnings per Share (“EPS”) and Headline Earnings per share (“HEPS”) are
    expected to be in a range of 19 to 21 cents, representing an increase of
    between 65% and 85% on the comparable EPS and HEPS of 11.5 cents for the six
    months ended 30 June 2014.

Adjusted headline earnings are calculated by the Company in order to reflect the
sustainable earnings of the group. Adjusted HEPS for the six months ended 30 June
2015 will also range between 19 and 21 cents per share, representing an increase of
between 38% and 58% compared to the prior period adjusted HEPS of 13.7 cents per
share.

This is shown in the table below (6 month periods):

                                                   Jun-14         Jun-15          Range
EPS                                                 11.5c      19c - 21c      65% - 85%
HEPS                                                11.5c      19c - 21c      65% - 85%
Adjusted HEPS                                       13.7c       19c -21c      38% - 58%

The factors which contributed to the change in earnings were as follows:
- A R6.4 billion (74%) increase in assets under management and advice to
   R15 billion (31 Dec 2014: R8.6 billion). This is comprised of assets under
   management of R13.5 billion (31 Dec 2014: R7.3 billion) and assets under advice
   of R1.5 billion (31 Dec 2014: R1.3 billion). Of this increase, R3.8 billion was by way
   of the acquisition of Methwold Investments Proprietary Limited with effect from
   1 June 2015. Anchor Capital continued to attract organic net inflows in excess of
   R300 million per month.
-  A subdued investment environment, with the JSE All Share index rising by 1.7%
   for the 12 months ended 30 June 2015.
-  Excellent investment performance, with the flagship Anchor BCI Equity Fund
   the top performing fund (out of 202 funds) in the General Equity category
   over six months, 1 year and 2 years. The 12-month return for the 12 months
   ended 30 June 2015 was 30.2% compared to a peer group average of 5.5%.
-  An increase in costs which primarily relate to: 1) Distribution staff and
   partnerships throughout the country to accelerate future growth, 2)
   Compliance and systems to enhance the client experience, 3) Technology
   for a new internet based investment offering and 4) Corporate finance and
   legal costs relating to completed and future acquisitions.
-  An increase in shares in issue from 62.6 million (pre-listing) on 30 June 2014 to
   over 140 million at 30 June 2015. The IFRS (non-cash flow) share-based
   payment expense, relating to share options, also impacted costs.
-  The cash raised from the listing and subsequent December 2014 issue of
   shares for cash (combined R310 million raised) was conservatively invested.
   This will be marginally dilutive at the earnings per share level until deployed in
   accretive acquisitions. The first such completed acquisition saw R72.8 million
   disbursed for Methwold Investments Proprietary Limited during June 2015.

The financial information on which this trading statement is based has not been
reviewed or reported on by the company’s auditors.

Johannesburg
13 July 2015

Designated Advisor
Arbor Capital Sponsors Proprietary Limited

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