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Ecsponent - Media release - Interim results
Interim results press release: First draft 22 MarchEcsponent posts strong interim results buoyed by a focused growth strategyTotal revenue increased by 81.5% to R245 million (2015: R135 million)Gross profits increased by 70% to R203.6 million (2015: R119.8 million)Operating profits increased by 198.3% to R129.3 million (2015: R43.3 million)Profits before tax increased by 121.4% to R55.4 million (2015: R25 million)Total assets increased by 128.1% to R1 063.3 million compared to R466.2 million;Resultant earnings per share increased by 22.1% to 3.16 cents per share (2015: 2.59 centsper share)23 March 2017 – African financial services company, Ecsponent Limited, today announced strong second interim results for the 12 months ended 31 December 2016. The group’s financial year end has moved to 31 March.Building on its track record of exponential growth, the results reflect the group’s decision to focus on providing secured business credit and continued growth in its African business that leverages the expertise of local businesses. Total revenue increased by almost 82 percent to R245 million and operating profits were up 198 percent to R129 million, from the comparable period last year.“With the results serving as foundation, the group further refined the focus of its operations and investments. The further rationalisation includes several financial transactions designed to streamline operations and increase growth in our strategic target markets. The financial transactions are focused on the core business of capital raising, SME funding, enterprise development, and private equity investment. These are all areas where the group has performed well historically,” says Terence Gregory, CEO of the Ecsponent group.A change in the South African Institute of Chartered Accountants’ categorisation requirements, resulted in the benefit of the disposal of certain financial assets being included in the calculation of headline earnings per share (HEPS) for the comparative period 2015. However, the disposal of the Swaziland retail credit business during 2016 was categorised under IFRS 10 and therefore excluded from the HEPS calculation. As a result of this accounting treatment, the growth in earnings per share (EPS) did not flow through to the HEPS.“Continued growth in HEPS remains an important measure, but looking at the bigger picture, we are clear that our growth trajectory will continue. All other major indicators are positive and we have exceeded our target of R 1-billion in assets at the end of the period,” adds Gregory.
“The group has showed success in its transition to providing secured business credit and is set to make inroads in the enterprise and supplier development sectors. Here, the demand for credit remains buoyant as most emerging businesses battle to access funding. In addition to credit, our model provides skills transfer and upliftment of vendors while supporting corporate businesses to channel their preferred procurement spending in areas where growth and development are most needed,” adds Gregory.“These are exciting times for the group, underpinned by an ongoing strategy to expand core business areas, with specific focus on continued investment in credit operations. Ecsponent is committed to growing its underlying assets and expanding in Africa driving top line growth, complementary mergers and acquisitions, and cost efficiencies,” concludes Gregory.EndsAbout Ecsponent LimitedEcsponent Limited (JSE:ECS) is listed on the JSE’s main board under the Financial Services Speciality Finance sector. The group predominantly creates wealth by investing in companies that offer a range of niche financial services in South Africa and Africa. These services vary in different jurisdictions of operation, and include capital raising from retail and institutional investors, enterprise lending, institutional funding and secured payroll lending.While Ecsponent focuses primarily on the financial services industry, it diversifies its investments across multiple industries and geographies by identifying private equity opportunities to contribute to the group’s wealth generation.Currently, the group’s private equity investments are diversified across industries like biotechnology, media intelligence, and mining and engineering supplies.