Capricorn Group’s headline earnings per share decrease by 13%
Capricorn Investment Group’s diluted headline earnings per share (HEPS) decreased by 13% while its basic earnings per share (EPS) increased by 0.2%, for the financial year ended 30 June.
Moreover, net interest income increased by 10.3%, largely due to the inclusion of Capricorn Investment Holdings (Botswana) Ltd (CIHB) and Cavmont Capital Holdings Zambia Plc (CCHZ) in the results for a full 12 months.
PSG Konsult Namibia stated that the net interest margin after impairment is also higher at 4.4% than expected, adding that growth in earnings, dividends and normalised growth in gross loans and advances were very much in line with it’s forecasts.
Noting that the company’s outlook/guidance has not seen any change, PSG explained that the Group continues to focus on diversifying its business structure and on digitisation and technological spend.
“Strategic changes were made to the group’s structure as management work on diversifying their business and revenue streams. Cavmont Capital in Zambia (acquired January 2017) continued to post disappointing results, whilst Botswana contributed positively,” PSG stated.
Meanwhile, Bank Windhoek remains the largest contributor to profits after tax for The Group of 86.0% for the current financial year. Capricorn Capital started to operate in the first quarter of 2018 and offers investment banking, advisory services and solutions in Southern Africa. The Group also acquired a controlling interest in Entrepo Holdings, a micro-lending, life insurance and income protection business in Namibia. At financial year end CGP held an 18.3% share in Nimbus Infrastructure Limited, which was increased to 30% shortly after.
“Investors should be unsurprised by the results as CGP’s FY18 figures are very much in line with expectations,” PSG said.