CGP | Capricorn Group - FY21 Results Review

    Capricorn Group Ltd (CGP) released results for the year ended 30 June 2021 (FY21). Profit after tax from continuing operations posted moderate growth of 1.2% y/y to N$1.02 billion and headline earnings per share increased by 10.3% from 157.2 cps to 173.4 cps.ROE for the year came in at 14.2%, while the ROE from continuing operations amounted to 14.8% (FY20: 15.7%). A final dividend of 38 cps was declared, bringing the total dividends for the financial year to 60 cps (FY20: 50 cps).

    CGP restated their FY20 statement of comprehensive income due to interest on loans and advances in stage 3,and the corresponding increase in the impairment unwind on expected credit losses for stage 3,not being recognised in accordance with IFRS 9.

    The FY21 results were driven by a sharp contraction in interest expenses of 29.1% y/y or N$739.8 million to N$1.80 billion following last year’s interest rate cuts by the BoN, and a 62.6% y/y increase in share of associates’ results to N$103.6 million. Paratus Group was the biggest driver of this increase, reporting a N$29.7 million increase in CGP’s share of profit after tax, followed by Sanlam Namibia, recording an N$11.7 million increase. CGP completely disposed of its 17.7% stake in Paratus Namibia Holdings during the period,management explains that this was done in line with their initial intention to only have one investment at Paratus Group to benefit from the company’s diversification into Africa.


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