South African financial services firm, Alexforbes, has declared a final and special dividend after winning the first phase of a legal battle involving a long-standing liability. The company, led by Group Chief Executive Officer, Mr. Dawie de Villiers, made the announcement on Sunday, 9th June 2025, following a court judgment in its favour.
Alexforbes declared a final cash dividend of 33 cents per share, representing a 10 percent increase compared to the previous financial year. This brings the total annual dividend to 55 cents per share. In addition to the final dividend, the company also announced a special dividend of 10 cents per share for shareholders. The special dividend will only be paid out if it is approved by the South African Reserve Bank before July 8, 2025. Trading on the shares will go ex-dividend on July 16, and payment will be made on July 21. A 20 percent withholding tax will be deducted for shareholders who do not qualify for tax exemption.
The special dividend came as a result of a positive court ruling for Alexforbes in a legal case concerning an enhanced transfer value (ETV) liability. The matter dated back to 2012 when Alexforbes sold a subsidiary to a UK-based insurer. In 2021, the company set aside funds to cover a possible warranty claim from that sale. The court ruled in favour of Alexforbes, awarding it R152 million, along with an additional R34 million in interest. The company has already recorded this recovery in its financial books and says it will pursue the remaining part of the claim through arbitration.
Alexforbes posted strong financial results for the year ended March 31, 2025. Operating income rose by 13 percent to R4.397 billion. Headline earnings per share (HEPS) increased by 15 percent to 70.8 cents. Profit before non-trading items also went up by 14 percent, reaching R911 million. The company reported R1.230 billion in cash from continuing operations, representing a 15 percent growth. It maintained a regulatory surplus capital of R1.348 billion and R700 million in cash, which reflects a healthy liquidity position.
Mr. Dawie de Villiers expressed satisfaction with the company’s performance. He said Alexforbes, which has been in existence for close to 100 years, is still making major contributions to financial services in South Africa. According to him, the firm now provides financial advice to over one million retirement fund members. He explained that this is being achieved by expanding the number of financial advisers and adopting digital tools to provide automated advice.
He also announced the introduction of “Alexforbes One,” a redesigned umbrella fund platform aimed at offering a simple and modern pension solution. This new platform combines financial benefits with strong customer engagement and access to professional advice, regardless of income level or age. In addition to its retirement and investment services, the company’s new Impact Advisory unit, which focuses on environmental, social, and governance (ESG) consulting, recorded its first revenue this year. The flagship initiative under this unit, the “Retirement Fund of the Future,” won an award in the industry. To expand this segment further, Alexforbes acquired Paragon Impact, a firm known for sustainability-monitoring technology.
Looking ahead, Mr. de Villiers said the board of Alexforbes will stick to its current dividend policy, which is based on a payout ratio of 1.0 to 1.5 times the company’s earnings. He noted that the strong capital and cash position of the company will allow it to continue rewarding shareholders with dividends, without affecting its financial stability.
Alexforbes also reported a 14 percent rise in its total assets under administration and management, now valued at R599 billion. Its normalised headline earnings per share grew by 23 percent to 69.1 cents. The results reflect strong growth in the market, successful integration of recent acquisitions, and high client retention rates.
For Nigerian and other African investors, this development provides a good example of how resolving legacy legal issues and taking strategic investment decisions can strengthen a company’s financial position. It also shows how financial services firms can grow revenue while promoting financial inclusion and sustainability.
