Publications
Partners
Cape Town – Cadiz Holdings [JSE:CDZ] lifted diluted headline earnings per share by 23% to 2.7 cents in the year to March 2014 as the group’s turnaround programme drew to an end and the business increased its focus on its core business of asset management.
The group’s advisory business grew revenue by 76%.
Headline earnings totalled R6.2m and a dividend of 4.4c per share was declared for the year.
CEO Fraser Shaw said the group had, however, encountered a difficult trading period, with performance impacted by lower than expected asset management fee income and increased costs of the asset management staff equity and retention scheme.
Gross operating revenue was 6% lower at R139m, while investment income was down 7% to R41m.
Expenses continued to be tightly managed. Group operating costs were 3% lower at R165m despite the inclusion of the asset management staff equity and retention scheme expense for the first time.
Costs excluding the impact of this scheme would have been down 7%. The staff head count reduced by 16% to 97.
The integration of BNP Paribas Cadiz Securities, in which the group has a 40% interest, into BNP Paribas was completed and the business is now gaining traction in the market.
This is reflected in the share of the loss declining to R3.8m from R11.4m in the previous financial year.
Shaw said Cadiz has continued to focus on building an independent asset management company.
Total assets under management declined by R6.1bn from March 2013 to R28.5bn at year end, mainly as a result of a single client withdrawal of R5.5bn in July 2013.
“While net asset flows have been negative, Cadiz Asset Management has benefited from improving margins by gaining higher yielding mandates during the period,” he said.
Investment performance remained competitive, with particularly strong performance in unit trust funds.
The Cadiz Money Market Fund is ranked the first or second best performing fund over all measurement periods while the Cadiz Absolute Yield Fund is in the top quartile of all domestic multi-asset income funds over all periods longer than one year.
Cadiz Corporate Solutions, the group’s advisory business, advised on several local and an increasing number of cross-border M&A transactions.
The business performed well this year and has a healthy deal pipeline. The focus on the resources, infrastructure and renewable energy sectors will continue.
At year-end the group’s investment portfolio totalled R306m.
On the prospects for the group, Shaw said following the turnaround programme the business now aims to grow revenue while continuing to contain costs.
The group’s advisory business grew revenue by 76%.
Headline earnings totalled R6.2m and a dividend of 4.4c per share was declared for the year.
CEO Fraser Shaw said the group had, however, encountered a difficult trading period, with performance impacted by lower than expected asset management fee income and increased costs of the asset management staff equity and retention scheme.
Gross operating revenue was 6% lower at R139m, while investment income was down 7% to R41m.
Expenses continued to be tightly managed. Group operating costs were 3% lower at R165m despite the inclusion of the asset management staff equity and retention scheme expense for the first time.
Costs excluding the impact of this scheme would have been down 7%. The staff head count reduced by 16% to 97.
The integration of BNP Paribas Cadiz Securities, in which the group has a 40% interest, into BNP Paribas was completed and the business is now gaining traction in the market.
This is reflected in the share of the loss declining to R3.8m from R11.4m in the previous financial year.
Shaw said Cadiz has continued to focus on building an independent asset management company.
Total assets under management declined by R6.1bn from March 2013 to R28.5bn at year end, mainly as a result of a single client withdrawal of R5.5bn in July 2013.
“While net asset flows have been negative, Cadiz Asset Management has benefited from improving margins by gaining higher yielding mandates during the period,” he said.
Investment performance remained competitive, with particularly strong performance in unit trust funds.
The Cadiz Money Market Fund is ranked the first or second best performing fund over all measurement periods while the Cadiz Absolute Yield Fund is in the top quartile of all domestic multi-asset income funds over all periods longer than one year.
Cadiz Corporate Solutions, the group’s advisory business, advised on several local and an increasing number of cross-border M&A transactions.
The business performed well this year and has a healthy deal pipeline. The focus on the resources, infrastructure and renewable energy sectors will continue.
At year-end the group’s investment portfolio totalled R306m.
On the prospects for the group, Shaw said following the turnaround programme the business now aims to grow revenue while continuing to contain costs.
