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Friday, December 8, 2017

Abil African Phoenix turns a profit on its continuing operations

African Phoenix, which rose out of the ashes of Abil in February, reported it turned to a profit for continuing operations for the year to end-September.


Headline earnings per share (HEPS) for continuing operations was 13.7c from the prior year’s headline loss of 6.5c, its results released on Friday morning said

But its headline earnings per share (HEPS) for both continuing and discontinued operations of 13c was nearly a third of the prior year’s 34c.

Following the separation of the "good bank" portion of Abil which has resumed trading as African Bank, African Phoenix was left with Standard General Insurance Company (Stangen) as its sole trading subsidiary.
It also inherited a portion of the "bad bank" part of Abil, which is now named Residual Debt Services (RDS), and furniture chain Ellerines.

The group reported an after-tax profit of R186m, which was mainly from Stangen, but also from a R48m "fair value recognition" of the RDS bonds it owns and R45m from "fully impaired claims" against Ellerines.

Abil shareholders, who were unable to trade from when its share was suspended in August 2014 until it was resurrected in February as African Phoenix, have seen the price rise over 40% from 45c to the 64c it last traded at.

"Our goal is to create long-term value by actively investing in a diversified group of businesses. In pursuit of our goal, we aim to appoint a management team with demonstrable skills in deploying capital, generating shareholder value and an ability to utilise our unique structuring opportunity," chairman Morris Mthombeni said in the results statement.

Businesslive

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