Publications
Partners
Johannesburg - Black-owned and managed financial services enterprise Vunani reduced its diluted headline loss per share from 26.54 cents to 3.18 cents for the six months ended June.
Revenue decreased during the interim period by 28.9% to R74.8m from R105.2m mainly as a result of the slow down in the financial markets and our scheduled cutback in property developments in response to the decline in property markets.
Operating profit decreased by 45.3% from R25.4m to R13.9m mainly due to the amortisation of intangible assets on the acquisition of Vunani Corporate Finance in 2008.
An increase in expenses was largely due to the acquisition of new businesses in the second half of 2008, included for the full interim period in 2009.
Vunani's total assets decreased to R1.97bn (31 December 2008: R2.02bn) as a result of fair value adjustments.
"We are pleased with our improved performance, which is mainly due to the higher valuations in our empowerment investments. Our financial services business produced a solid result despite the difficult economic conditions." We are well on the path to concluding the company's recapitalisation which will be a major step forward and we continue to invest in our business, having finalised two acquisitions in the last six months, in order to build a platform for sustainable future growth" said Ethan Dube, CEO of Vunani.
No dividends were declared or paid to shareholders during the 6 months ended 30 June 2009 (2008: R nil).
Looking ahead, the group said the recovery in the equity markets experienced since March this year has had a positive impact on the economy; however the full impact of this recovery has not yet been fully felt in the Vunani businesses.
"Vunani remains committed to deliver on its vision to become the pre- eminent medium sized black-owned and managed financial services business.
The directors expect trading conditions to remain volatile in the short to medium term and will use this as an opportunity to continue to build a platform for the sustainable future growth in the core businesses," Vunani said.
- I-Net Bridge
