Old Mutual final results December 2018
Total revenue from continuing operations went down to R109.9 billion (R175.9 billion). Profit attributable to equity holders jumped to R36.6 billion (R14.4 billion). Furthermore, headline earnings per share grew to 306.9 cents per share (283.7 cents per share).
The board of directors has approved and declared a final dividend of 72 cents per ordinary share.
The final dividend of 72 cents per share, results in a full dividend cover of 2.04 for the 2018 year which is in line with Old Mutual Ltd.'s dividend cover target of 1.75x to 2.25x. The final dividend will be paid out of distributable reserves and is payable on 29 April 2019 to all ordinary shareholders recorded on the record date. The dividend of 72 cents per ordinary share will be subject to a local dividend tax rate of 20% which will result in a net final dividend, to those shareholders who are not exempt from paying dividend tax, of 57.6 cents per ordinary share. International shareholders who are not exempt or are not subject to a reduced rate in terms of a double taxation agreement will be subject to dividend withholding tax at a rate of 20%.
Global growth is still expected to continue for 2019, assuming trade tensions and equity market risks do not result in a loss of confidence. This presents the opportunity for our operations in those regions to grow our consumer base and develop our product lines.
National elections are planned for 8 May 2019 in South Africa and elections in several other key markets are also planned, and in the case of Nigeria, have occurred during the first half of 2019.
At a segment level we are encouraged by the strong flows secured in Corporate and operational improvements in Old Mutual Insure. In Mass and Foundation Cluster and Personal Finance, we are focussed on driving further growth through expanding our multi-channel distribution capabilities. We remain on track to deliver R1 billion in recurring expense savings in 2019, and grow expenses within inflation thereafter.
Our RFO target of GDP+2% CAGR will become increasingly challenging to achieve over our three year target period due to negative RFO growth in 2018. AHE will continue to be influenced by investment returns in South Africa and the Rest of Africa. Despite the weak growth outlook in South Africa, the above macroeconomic risks and strong competitive pressures, we remain confident in delivering our medium term targets.