Vunani reports R3.1 million loss in challenging economic climate

VUNANI, the independent black-owned diversified financial services group, for the year ended February 28, 2025 posted a loss of R3.1 million, compared to a profit of R24.2m in 2024 amid a difficult and volatile operating environment owing to sluggish economic growth.

- PHILIPPA LARKIN

Loss per share decreased to 7.1c from earnings per share of 9c the prior year. Headline loss per share decreased to 2.8 cents from headline earnings per share of 7.4c.

Despite this the group declared a final dividend of 35 cents up from 9c the prior year.

Chairman Lionel Jacobs and CEO Ethan Dube said notwithstanding these challenges, in the latter half of the year, Vunani saw a slight uptick in equity markets, which positively impacted growth in the company's funds under-management.

"We were encouraged by the lowering of interest rates, although it was at a much slower rate than we had anticipated. The stall in a rate decrease was largely due to macroeconomic factors such as the presidential elections in the United States in November 2024.

Interest rate cuts only resumed recently as market conditions eased," they said.

Revenue and insurance revenue for the group increased to R692.9 million up 4% from the prior year. Other income, which relates to non-core income generated from the group's various businesses, decreased to R6.9m from R19.4m.