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Cape Town - Multinational financial services and information management services group, Prescient [JSE:PCT] announced a solid performance on Thursday in its second full year as a listed entity.
For the financial year ending March 31 2015, the group achieved total income growth from continuing operations of 26% to R835.9m, headline earnings growth from continuing operations of 14% to R124.5m and declared a cash dividend per share of 5.75 cents for the year.
The group said the increase in total income was due to growth in assets under management of 11%, as well as strong investment performance, which resulted in higher performance fees.
This applied particularly to the China Balanced Fund, which significantly outperformed its benchmark, generating a robust performance fee flow as a result. There was also strong growth in total income at Prescient Fund Services where third party client assets under administration grew by 56%.
The information management services group PBT reported strong total income growth from all operating units, on the back of continued high demand for consulting services. An added attraction of this business is that at least 50% of the revenue is in foreign currency.
The client base in Africa is invoiced mostly in US dollars, while PBT Australia generates Australian dollar income.
CEO Herman Steyn said the group made substantial progress in the 2015 financial year.
“Prescient increased assets under management by 11%, assets under administration by 56% and recorded strong investment performance across mandates. The China Balanced Fund performed exceptionally well and we launched the China Conservative Fund to provide further diversification and performance benefits to our clients." said Steyn.
“Prescient Fund Services expanded its service offering locally and globally, PBT achieved pleasing total income growth and Prescient Securities was again recognised by the investment community with a strong performance in the annual Financial Mail analyst ratings.”
Steyn believes the Prescient Group is well positioned for growth.
"The dual benefit of a highly skilled workforce and a strong technology backbone allows the group to embrace regulatory and market changes, such as retirement reform and renewable energy, to benefit from the opportunities these changes present for companies with entrepreneurial flair,” he said.
The group has diversified its earnings base significantly over the last few years, not only in terms of product range, but also in terms of geographic regions and the currencies in which revenue is earned.
