Peregrine flags lower earnings


Peregrine flags lower earnings

Published Date: 2019-10-14 | Source: Stephen Gunnion | Author: Stephen Gunnion

Peregrine flags lower earnings

The financial services group says underlying results from its operating divisions will reflect a rise of up to 15 percent.

Peregrine Holdings has warned shareholder to expect a decline in first-half earnings. However it says ongoing segmental headline earnings per share (HEPS) will be higher. The wealth manager and financial services group introduced segmental reporting in its previous results, saying they better reflected the economic benefits that its various divisions deliver to shareholders.

Peregrine owns a number of diversified financial services businesses, including Citadel Holdings, Peregrine Capital, Stenham, and SA Alpha. It also owns 50% of independent corporate advisory house Java Capital.

In a trading statement, it said basic EPS and HEPS for the six months to end-September would be between 35% and 45% lower than those reported last year. It attributed the decline to the disposal of its Broking & Structuring business last October, which contributed R77 million to earnings in the prior comparable period, as well as a one-time performance fee of £3 million (R58 million), received by offshore wealth manager Stenham, which also boosted the previous year's numbers.

It said ongoing segmental HEPS would be 10-15% higher than the 68.8c reported previously.

The previous financial year was characterised by a challenging environment for global financial markets in general. With global growth already slowing, it said the trade war between US and China has dampened future expectations. That led to a tightening in liquidity, which is bad for Peregrine.

Its interim results are scheduled for release on 13 November. Its shares declined 1.2% to R16.87 on Friday.

Similar Stories