Namibia Asset Management (NAM) expects Earnings per share (EPS) and headline earnings per share (HEPS) for the six month-period ended 31 March to decrease between 15% and 25% (between 0.62 and 1.04 cents per share) when compared to the EPS (4.16 cents) and HEPS (4.16 cents) reported for the six month-period ended 31 March 2023.
Fund management earnings per share (FMEPS) for the six month-period ended 31 March 2024 are however expected to decrease between 5% and 15% (by 0.15 and 0.45 cents per share) when compared to the FMEPS of 3.02 cents per share for the six month-period ended 31 March.
The company explained that FMEPS is used by management to measure true operating financial performance. FMEPS excludes the net mark-to-market impact of fair value gains and losses on our investments held in marketable securities.
In terms of NSX listing requirements, a listed company is required to publish a trading statement once it is satisfied that a reasonable degree of certainty exists that financial results for the next period to be reported on will differ materially from the financial results for the prior corresponding period.
“The board of directors of NAM is satisfied that a reasonable degree of certainty exists that the Company’s earnings will decrease as outlined,” the company said.
The company advised shareholders that the financial data upon which the trading statement is based have not been reviewed by NAM’s external auditors. It advised shareholders to exercise caution when dealing in the company’s securities.
NAM’s reviewed condensed group annual financial results for the six month-period are expected to be released on 15 May.
Last year, NAM in the period that ended 31 March 2023 said total assets under management (AuM) increased by 8% to N$17.5 billion (September 2022: N$16.2 billion). Revenue declined by 9% to N$33 million for the period.
Total operating expenses decreased by 6,2% to N$27 million (31 March 2022: N$28.8 million) due to its continued focus on managing expenses and our variable expenditure model that has shielded shareholders from the continued extreme cost pressures that businesses continue to experience.
Total assets under management (AuM) increased by 8% to N$17.5 billion (September 2022: N$16.2 billion). The retail AuM represented N$2.5 billion (September 2022: N$2.4 billion) at the end of March 2023 while institutional AuM represented N$15 billion (September 2022: N$13.8 billion).
The company said 2022 calendar year was a volatile one for global markets, riddled with strong macro shocks including an ongoing war, inflationary pressures and unexpectedly steep monetary tightening, creating challenging operating conditions globally.
