The Financial Mail’s Top Companies for 2015 has awarded African Equity Empowerment Investments Limited (AEEI), formerly Sekunjalo Investments Limited, an impressive 13th spot on its prestigious annual list of top listed companies.
AEEI’s lofty ranking on the Financial Mail list comes on the back of the company’s proven strategic business model, consistent growth and increase in shareholder and stakeholder value.
Group CEO of AEEI, Mr Khalid Abdulla says, “We are very proud and deeply honoured to be listed amongst the Financial Mail’s top twenty listed companies, and to be ranked 6th in the investment sector. I am proud that AEEI is better positioned than some of the multinational listed companies we are compared to. It was not an easy journey to get to where we are today, but our perseverance and latest growth strategy plans are clearly being noticed by the market”.
Abdulla said the fundamental growth in the Group’s business is reflected in the hike in profit, revenue growth and an increase in earnings per share.
According to an article in the Financial Mail Annual Report ‘the fundamental growth in the AEEI business is outstanding and this is reflected in the share price. For the six months to end-February 2015, headline earnings per share rose by 188% and the company paid a maiden dividend to shareholders’.
Joshua Benton, a research analyst, published the following quote in Stock of the Month February 2015, “Sekunjalo’s diversification model equals more profits from multiple sectors and this one share gives you five sectors to profit from”.
All the AEEI Group’s subsidiaries have shown good profits and an increase in asset value and cash flow. The major operations in marine and IT have shown outstanding performances due to its strategies to extract efficient organic growth and synergies within the broader Group.
“The teams of our various subsidiaries are very excited at the ranking, which we attribute to the cohesive implementation of the Group’s strategy. We know we are on the right track and the market is taking notice of our upward status. The executive teams have been intentionally focused on driving the strategy in their operations and it is expected that we will see a robust and consistent increase in business growth as well as shareholder value going forward,” said Abdulla.
Better catch rates in its fisheries business, improved pricing, greater sales volumes and the weaker exchange rate, as well as consistent efficiencies had a positive impact on the operating profit.
“The AEEI Group has built a strong platform for further organic growth – both qualitative and quantitative – and has positioned itself well to increase its investment arm through additional acquisitions and partnerships”, Abdulla added.
The Group is also seeing significant growth in its strategic investments in BTSA, Saab and Pioneer Foods. AEEI increased its existing stake in Saab to a substantial 25% + 1 share, when acquiring the stake for R120 million during May 2015.
The Financial Mail also noted that due to the seasonal nature of the AEEI Group operations, the results are expected to be much stronger in the second half of the financial year.
“I am confident that the Group is on track to grow further based on our VISION 2020 strategy, which is being implemented by all our management teams and subsidiaries. AEEI has consistently grown over the many years and it has shown good profits and cash flow”, says Abdulla.