Alexander Forbes Group Holdings Ltd. (AFH), a South African financial services company, swung to a profit in the first half after changing its capital structures in preparation for its initial public offering in July.
Net income was 114 million rand ($10.4 million) in the six months though September, compared with a loss of 34 million rand a year earlier, the Johannesburg-based company said in a statement today. Per-share earnings excluding one-time items rose to 12 South African cents from a loss of 9 cents last year. No dividend was declared.
“Strong performances were reported by our Investment Solutions and Afrinet divisions,” Alexander Forbes, Africa’s largest independent retirement-fund administrator, said in the statement. “The strategy to grow the retail market segments throughout the African operations continues to show good progress.”
Alexander Forbes was bought by a private-equity consortium for 8.2 billion rand ($745 million) in 2007. While it delisted at the time, the company returned to Johannesburg’s stock exchange in July so that the private-equity shareholders could exit their investment. Marsh & McLennan Cos. (MMC)’s Mercer unit has bought 34 percent of the stock this year as part of a plan to expand in Africa.
“Our focus will continue to leverage our core, and grow our retail and public sector offering and footprint in Africa beyond South Africa,” the company said.