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Johannesburg - Shares of Afrocentric Investment Corporation [JSE:ACT] gained 10% to R1.65 after the South African investment firm says its full-year headline earnings per share rose 62%, helped by strong performance of its portfolio, including healthcare investments.
The company also proposes a maiden 7.5 cents distribution per share and will continue to consider new investment propositions.
Revenue came in at R1.356bn from R519.8m rand a year earlier. Total comprehensive loss came in at R3.2m from an income of R50.5m in the corresponding period of 2009.
Profit from core operations was up 120% to R126.3m from R57.3m. The company has also proposed a maiden 7.5 cents distribution per share, subject to shareholders' approval.
The group's major investments are in private healthcare, electronics, power and the communications industries.
The company said its South African businesses have not been immune to the volatile economic conditions affecting global markets.
During fiscal 2010 AfroCentric's portfolio companies responded to their market challenges in a proactive and deliberate manner.
"These actions have preserved the businesses' sound commercial foundations and allowed AfroCentric to maintain a satisfactory growth trend of core earnings. This is most evident in the growth in headline earnings per share for the year under review and the growth in operating profit of core business units," it said.
In February 2009 AfroCentric acquired a controlling interest in Lethimvula Investments Limited (LIL).
LIL's wholly-owned subsidiary, Medscheme, is the largest, black-owned, independent medical aid administrator and health risk solutions provider in South Africa.
LIL's full year performance contributed towards the increase in operating profits in AfroCentric to R126.4m from R57.4m in 2009.
Looking ahead, the group said its board was satisfied with the progress of AfroCentric for the past year and the sound platform for future earnings.
"During the past three months, there seems to be a greater degree of business confidence developing in South Africa and the Board Investment Committee will continue to consider new investment propositions that are presented.
"While trends are encouraging, it is too early to judge whether the growth in earnings and the profit warranty thresholds in the LIL acquisition will be fulfilled. In the meantime, LIL continues to trade in a robust manner and consistent with our estimates and expectations at the time of acquisition," it said.
The company also proposes a maiden 7.5 cents distribution per share and will continue to consider new investment propositions.
Revenue came in at R1.356bn from R519.8m rand a year earlier. Total comprehensive loss came in at R3.2m from an income of R50.5m in the corresponding period of 2009.
Profit from core operations was up 120% to R126.3m from R57.3m. The company has also proposed a maiden 7.5 cents distribution per share, subject to shareholders' approval.
The group's major investments are in private healthcare, electronics, power and the communications industries.
The company said its South African businesses have not been immune to the volatile economic conditions affecting global markets.
During fiscal 2010 AfroCentric's portfolio companies responded to their market challenges in a proactive and deliberate manner.
"These actions have preserved the businesses' sound commercial foundations and allowed AfroCentric to maintain a satisfactory growth trend of core earnings. This is most evident in the growth in headline earnings per share for the year under review and the growth in operating profit of core business units," it said.
In February 2009 AfroCentric acquired a controlling interest in Lethimvula Investments Limited (LIL).
LIL's wholly-owned subsidiary, Medscheme, is the largest, black-owned, independent medical aid administrator and health risk solutions provider in South Africa.
LIL's full year performance contributed towards the increase in operating profits in AfroCentric to R126.4m from R57.4m in 2009.
Looking ahead, the group said its board was satisfied with the progress of AfroCentric for the past year and the sound platform for future earnings.
"During the past three months, there seems to be a greater degree of business confidence developing in South Africa and the Board Investment Committee will continue to consider new investment propositions that are presented.
"While trends are encouraging, it is too early to judge whether the growth in earnings and the profit warranty thresholds in the LIL acquisition will be fulfilled. In the meantime, LIL continues to trade in a robust manner and consistent with our estimates and expectations at the time of acquisition," it said.
