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AEEI reports jump in earnings, profit

Cape Town – Empowerment company African Equity Empowerment Investments (AEEI) [JSE:AEE] has reported a jump in earnings on the back of increased profit for the interim period to February  29 2016.

AEEI, formerly Sekunjalo Investments Limited, reported a 67% increase in earnings per share and operating profit up by 39%.

“We are very pleased to have exceeded our growth targets during this exciting new phase for our Group. This comes as a result of strong contributions from all AEEI’s underlying operations and investments” said Khalid Abdulla, chief executive officer of the AEEI Group in a statement.

Group revenue increased 18% and net cash from operations jumped 169% from R11m to R29m. Its assets base increased to R1.5bn from R1.2bn in 2015.

The company acquired a position in Saab Grintek Defence (SGD) in addition to British Telecommunication Services South Africa (BTSA) and Pioneer Foods Group Limited (Pioneer).

A R10m investment in Sygnia delivered an 80% increase in value.

“These deals are testament that AEEI is the empowerment partner of choice to large multinationals,” said Abdulla.

The company paid a dividend of R12.3m to its shareholders.

Abdulla said that traditionally the group’s earnings were stronger in the second half of the year, but hinted that the firm has increased its acquisitions appetite.

“Going forward we will consistently grow organically and will also do more acquisitions. We alluded to listing our food and fishing as well as IT divisions at last year’s financial year end. It seems that this may become a reality within the next three to five years.”

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