Wrap Text
Extract of the audited results for the year ended 31 March 2026 and cash dividend announcement
Alexander Forbes Group Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration Number: 2006/025226/06)
JSE Share Code: AFH and ISIN: ZAE000191516
(or Alexforbes the company or group)
EXTRACT OF THE AUDITED RESULTS FOR THE YEAR ENDED 31 MARCH 2026 AND CASH DIVIDEND ANNOUNCEMENT
Highlights
- Operating income up 10% to R4 848 million
- Normalised profit from operations (before non-trading and capital items) up 22% to R1 027 million
- Headline earnings per share from total operations down 5% to 67 cents per share
- Normalised headline earnings per share maintained at 69 cents per share
- Regulatory surplus of R1 191 million, with a capital cover ratio of 2.2 times, comfortably above the target solvency ratio of 1.2 times
- Gross final cash dividend maintained at 33 cents per share, taking the annual dividend to 57 cents per share, up 4% year on year
- Total active members under administration(1) exceeds 1.3 million
- Closing total assets(2) increased 22% year on year to R733 billion
Chief executive officer, Dawie de Villiers, commented: "This has been another solid year of performance for Alexforbes including being recognised as South
Africa's best asset manager. We delivered strong growth in operating income and a 22% increase in normalised profit, while maintaining a robust balance
sheet and high levels of client retention. These outcomes are the result of consistent execution over time. We have made substantial progress in simplifying
our business, strengthening accountability and improving the way we serve clients. What matters more is that we are taking practical steps to strengthen Alexforbes
by structuring our operations to get closer to our clients, investing in technology and keeping best advice at the heart of everything we do."
Our performance
We delivered strong financial results and tangible benefits to our clients, supported by a favourable operating environment in South Africa and disciplined
execution across the group.
The corporate business delivered a stable result. Our retirements consultants exceeded new business expectations by anticipating and responding to emergent advice
needs across our institutional clients. Our administration teams executed effectively in a more complex environment with elevated transaction volumes. Two pot
claims volumes and related fees were lower year on year. However, the compulsory preservation component for each individual adds to membership numbers and
ongoing service requirements, reinforcing the importance of operating capability and advice-led engagement across the member lifecycle. Our umbrella fund closed
the year with assets under management (AuM) of R197.7 billion. Health consulting faced competitive and pricing pressure, including the impact of lost business
and the impact advisory business underperformed relative to expectations.
Investments delivered consistently strong performance, supported by favourable markets and exceptional new business, particularly in retail and platform assets.
Total closing assets increased 22% to R733.2 billion. External recognition at the Raging Bull Awards, including South African Manager of the Year and Best
South African Interest-Bearing Fund on a risk-adjusted basis, provides independent validation of the strength of the investment process and the consistency of
delivery through market cycles.
Retail continued to gain traction with new business up 39% year on year to R36.5 billon, assets under advice up 17% to R131 billion and retail AuM up 21% to
R112.3 billion. In addition, several milestones in our retail journey have been achieved, including significant improvements to our digital platforms and continued
progress in the build out of our adviser force to 315 advisers at year end.
Expense management and technology execution remained disciplined. Technology investments continue to deliver meaningful value with progress in modernising
the technology ecosystem that underpins the long-term strategy. The client experience and operational stability have improved materially despite industry
disruptions such as the regulatory two pot reform. Key initiatives including the automation capability cloud migration of our administration system went live
successfully. The major administration system upgrade, approved in August 2025, is progressing well and remains on track to deliver efficiencies by 2028. The
outcomes reflect a technology function that is maturing rapidly, operating with focus, and delivering business value.
1 Includes standalone and umbrella fund member records.
2 Total assets include closing assets under administration (AuA) and assets under management (AuM).
Financial highlights Audited twelve months ended 31 March
2026/2025
Rm % change 2026 2025 2024
Continuing operations
Operating income(A) 10 4 848 4 397 3 905
Profit from operations (before non-trading and capital items) 12 1 024 911 801
Normalised profit from operations (before non-trading and capital items) 22 1 027 841 661
Cost-to-income ratio(B) (percentage) (40) bps 78.9 79.3 79.5
Normalised cost-to-income ratio(C) (percentage) (210) bps 78.8 80.9 83.1
Profit for the year 3 765 745 580
Cash generated from operations 20 1 472 1 230 1 073
Basic earnings per share (cents) 2 58.9 57.9 45.6
Headline earnings per share (cents) 3 59.5 57.9 52.9
Discontinued operations
(Loss)/profit from operations (before non-trading and capital items) nm (1) - 71
Profit from discontinued operations (41) 95 161 112
Total Group
Basic earnings per share (cents) (6) 66.4 70.8 54.7
Headline earnings per share (cents) (5) 67.0 70.8 61.5
Normalised headline earnings per share (cents) - 69.0 69.1 56.2
Interim dividend per share (cents) 9 24.0 22.0 20.0
Final dividend per share (cents) - 33.0 33.0 30.0
Annual dividend per share (cents) 4 57.0 55.0 50.0
Special dividend per share (cents) nm - 10.0 60.0
A. Operating income represents revenue net of direct expenses.
B. Cost-to-income ratio is calculated as a percentage of operating expenses (before non-trading and capital items) and adjusted for other income over
operating income.
C. Normalised cost-to-income ratio is calculated as a percentage of normalised operating expenses (before non-trading and capital items) and adjusted for
other income, over operating income.
Our financial performance
Operating income increased 10% to R4 848 million. The uplift was supported by higher average assets, positive investment performance, inflationary increases
within our retirements client base, sustained client retention and strong new business flows reported in the investments and retail business units.
Operating expenses of R3 854 million increased 9% year on year of which 4% relates to the change in accounting for our long-term incentive scheme and the prior
year effect of the IFRS 16 lease adjustment. Excluding these factors, the growth in underlying operating expenses was 5% year on year.
Normalised profit from operations, which excludes the IFRS 16 adjustment, increased 22% to R1 027 million. Including the IFRS 16 adjustment, profit from
operations (before non-trading and capital items) of R1 024 million is up 12% year on year.
Headline earnings per share from total operations decreased 5% to 67 cents per share. This movement primarily reflects base effect of the performance of the
discontinued operations in the prior year rather than a deterioration in the underlying performance of continuing operations. On a normalised basis, headline
earnings per share of 69 cents per share is stable year-on-year.
The group balance sheet remains financially robust, supported by the sustained cash flow generated from continuing operations, with a sound regulatory surplus
capital position of R1 191 million and available cash of R860 million. The group cover ratio of 2.2 times remains well above the target solvency cover ratio of
1.2 times.
A final cash dividend of 33 cents per share has been declared which when added to the interim dividend of 24 cents per share results in a total annual dividend of
57 cents per share. The total annual dividend is up 4% year on year.
Final cash dividend declaration
Alexforbes's dividend policy is set at a target range of 1.0 to 1.5 times earnings cover, with dividends determined with reference to normalised headline earnings.
A final dividend declaration has been considered by the board, taking into account the group's current and projected regulatory position, the available cash in the
group and its strong and consistent cash generation.
The board has declared a gross final cash dividend of 33.0 cents per share for the period ended 31 March 2026 (2025: 33.0 cents per share). The board is satisfied
that, after payment of the final dividend, the group will continue to maintain sufficient liquidity and capital strength.
The final dividend, together with the interim dividend of 24.0 cents per share results in a total annual dividend of 57.0 cents per share. The total annual dividend is
up 4% year on year.
The final dividend has been declared from income reserves.
A dividend withholding tax (DWT) of 20% will apply to all shareholders who are not exempt from the DWT, or who are entitled to a reduced rate in terms of the
applicable double taxation agreement. For South African shareholders subject to DWT, the final cash dividend net of 20% DWT will be 26.4 cents per share (2025:
26.4 cents per share).
The number of issued ordinary shares at the date of declaration is 1 299 508 372. The tax reference number of Alexander Forbes Group Holdings Limited is
9404921158.
The directors confirm that the group has satisfied the solvency and liquidity test as required in terms of section 4(1) of the Companies Act 71 of 2008.
The salient dates of the final dividend declaration are as follows:
Declaration date Thursday 11 June 2026
Last day of trade to receive a dividend Tuesday 14 July 2026
Shares commence trading 'ex' dividend Wednesday 15 July 2026
Record date Friday 17 July 2026
Payment date Monday 20 July 2026
Share certificates may not be dematerialised or rematerialised between Wednesday 15 July 2026 and Friday 17 July 2026, both days inclusive.
Prospects
Our purpose remains unchanged: to pioneer insight that delivers advice and solutions that impact people's lives. Looking ahead, we expect that the future will
continue to be shaped in moments of uncertainty. Economic, geopolitical and regulatory developments will keep shifting the operating environment. Our
confidence is not based on predicting the next shock. It is based on preparedness, disciplined execution and advice-led decision-making across the group.
Alexforbes as an investment destination
Alexforbes is executing a three-year, group-wide initiative to establish itself as a credible and preferred investment partner for investors in South Africa. This
initiative, referred to internally as Investment Destination, is not positioned as a marketing campaign. It is a deliberate attempt to build sustained belief, demand and
conversion over time by changing how the market understands and experiences Alexforbes as an investment business.
This ambition is designed to translate into measurable funded outcomes: higher-quality net inflows, improved asset retention and a growing base of platform and
product assets across institutional and retail channels. Importantly, it supports earnings quality in an asset-based model and strengthens the durability of growth
beyond a single market cycle.
Elements of this ambition are already visible in operating indicators. The group has continued to see strong institutional business flows, including platform assets,
and retail inflows have maintained an upward trend. These are the types of proof points that underpin credibility when positioning an investment proposition
across audiences.
Embracing artificial intelligence (AI)
Alexforbes is embracing AI in a deliberate and responsible manner, using it as a foundational enabler of productivity, insight and service quality rather than a
standalone capability. The group has formally adopted Microsoft Copilot as its primary enterprise AI platform within the Microsoft ecosystem, specifically to
support data protection, regulatory compliance and auditability in a controlled environment.
Implementation is governed. AI initiatives operate under a structured framework that includes a group AI steering committee, business-unit AI working
committees and an AI centre of excellence with explicit human-in-the-loop controls and alignment to Protection of Personal Information Act 4 of 2013 and
financial services regulation. This governance model is designed to ensure accountability for how AI is used, how outputs are validated and where AI is permitted to
influence decisions across the value chain.
Operationally, we are prioritising workflow-level adoption, not tool sprawl. That means applying AI to end-to-end processes such as document and decision
workflows, knowledge retrieval, meeting outcomes and action tracking, and repetitive administrative steps that slow service delivery. The intent is to drive
measurable gains in cycle times, consistency and capacity across client-facing and operational teams while maintaining appropriate controls over data and
output quality.
Through this approach, Alexforbes is positioning AI as a scalable, trusted capability that supports sustainable growth, operational resilience and improved outcomes
for clients and stakeholders.
Retail solutions in the making
Retail remains a key growth platform for Alexforbes. We are building targeted solutions that enhance advice delivery, strengthen asset retention and expand client
choice across financial journeys. New and improved offerings across discretionary portfolios, model solutions and offshore investing are being supported by
continued investment in digital platforms and adviser enablement. The aim is to simplify decision-making, improve conversion at critical client touchpoints and
scale across advised and non-advised channels. Together with a growing adviser ecosystem and strong integration with Alexforbes investment capabilities, these
enhancements position Retail to deliver sustainable earnings growth and improved client outcomes into the future.
Making a real-world impact through our sustainability intent
Alexforbes Impact Advisory and the Impact Academy continue to develop as leading sustainability and impact advisory and training offerings to retirement fund
and corporates. The acquisition of the award-winning, and globally unique, Paragon Impact software solution has bolstered capabilities and opened additional
opportunities. Some exciting developments include the inaugural Alexforbes Paragon Impact awards recognising the top-performing impact companies under the
JSE Top 100 companies.
Alexforbes is strategically positioned to assist clients in transitioning to a more sustainable future and to equally benefit from the growing demand for simplified
solutions and advice to navigate the complex and evolving sustainability landscape. Alexforbes will assist clients in preparing for increased sustainability-focused
regulation and anticipated mandatory sustainability reporting.
Unifying employee benefits through Alexforbes One
Simplifying complexity is central to enabling better decisions for employers and members. Alexforbes One expresses this intent through an umbrella funding
solution that enables holistic advice-led decision-making across employee benefits. The launch of Alexforbes One has been well received and the pipeline of
promising prospects continues to build.
One Fund Administration System
We have commenced the decommissioning of legacy fund administration platforms and are consolidating into a single fund administration system across
South Africa, Namibia and Botswana. The objective is improved client experience, cost efficiency and scalability over the medium term. Initial milestones have been
achieved and clients have been engaged.
For further information
This results announcement has been prepared in compliance with the JSE Listings Requirements and is the responsibility of the directors of the group.
Shareholders are advised that this results announcement represents a summary of the information contained in the annual financial statements for the year ended
31 March 2026 and does not contain full or complete details. The annual financial statements for the year ended 31 March 2026 are available via the following JSE
cloudlink: https://senspdf.jse.co.za/documents/2026/JSE/ISSE/AFH/AFSJUN2026.pdf and on the Alexforbes website:
https://investors.alexforbes.com/financial-results on 11 June 2026.
The annual results: analysis of results, summary financial statements and cash dividend declaration for the year ended 31 March 2026 is also available on the
Alexforbes website: https://investors.alexforbes.com/financial-results
The annual financial statements for the year ended 31 March 2026 have been audited by Deloitte & Touche, who expressed an unmodified opinion thereon. The
auditor's report can be found on pages 11 to 15 of the annual financial statements for the year ended 31 March 2026.
Any investment decisions by investors and/or shareholders should be based on a consideration of the annual financial statements for the year ended 31 March 2026
as a whole and investors and/or shareholders are encouraged to review the annual financial statements for the year ended 31 March 2026, available as set out above.
Any reference to future financial performance or any forecast financial information included in this announcement has not been separately reviewed, audited or
reported on by the group's external auditors.
On behalf of the board of directors
D (Kuseni) Dlamini DJ de Villiers
Chair Chief Executive Officer
11 June 2026
Sandton
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 11-06-2026 08:00:00
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