Press / Media | Cadiz News
Cadiz posts impressive results as market improves
01 June 2010
CADIZ Holdings had posted an improved financial performance, with gross operating revenues surging 16.8 percent to R390,7 million in the year to March, the financial services company said yesterday.
Ram Barkai, the chief executive of the Cape Town-based firm, described this set of figures as “solid", saying it came on the back of improved investment performance, high performance fees and a growing retail asset base.
Headline earnings shot up 36.2 percent to R 99.5 million while diluted earnings a share leapt 45.1 percent to 41.2c.
Barkai said: “These results are pleasing. We have seen an impressive turnaround from our operations."
The wholesale and retail businesses in the asset and wealth management unit collectively increased profit by 89 percent to R 67 million.
Mduduzi Ndlovu, a portfolio manager at Argon Asset Management, said the performance of this unit was the main driver given that the markets had surged 45 percent since the lows in March last year.
The securities business posted a resilient performance in the face of the slowdown in market activity over the past year. Profit, at R 74.1 million, had increased by just 2 percent over the previous year.
Growth in operating expenses was contained to 8 percent with most of the increase attributable to costs linked to improved performance. This included an interim salary increase to realign salaries with market benchmarks following the salary freeze imposed in the previous financial year.
Barkai, looking ahead, said as conditions in the domestic and global financial markets remained unclear, the group would exercise caution in the months ahead.
“Look, after every earthquake, you are bound to experience aftershocks. I think we should also expect some market aftershocks going forward," Barkai told Business Report in an interview.
Ndlovu said the direction the markets were going take in the near future would determine whether the company would sustain this performance. “I think that is a big call," Ndlovu said.
The asset management business would continue to focus on quality performance, a robust investment process and building a higher-yielding asset base.
Shares in Cadiz rose 3.03 percent to R 3.40 yesterday.
