NVFH 2020 Integrated Annual Report

those of the previous year and, secondly, how NVest has fared
compared with our listed wealth management competitors.
In summary, NVest did not manage to repeat the same levels
of year on year growth in revenue and profit that has been
achieved in previous years. However, most financial headlines
that will be unpacked in more detail within the Report are
either slightly up or relatively flat compared with the previous
financial year ended February 2019.
In terms of the second lens of competitor comparison,
NVest’s results compare and contrast very favourably on a
peer review basis within the South African financial services
industry, with many local competitors’ struggles manifesting
in negative trajectories. On both counts it is fair to say
that, all things considered and given the unprecedented
environment we have had to operate in, those are
noteworthy outcomes.
This integrated Report goes beyond the financial numbers,
however, and I am pleased to record that the Group has
had another productive year in terms of progressing our
strategic agenda of building capacity and capability and
ensuring that our businesses are positioned for growth. These
efforts have centred predominantly on the consolidation
and amalgamation of our Private Wealth Management
businesses into one legal structure to leverage scale and
operational efficiencies.
The operational and legal components of the restructuring
have gone smoothly and we are confident that this new
model will bear fruit for many years to come. I would like to
congratulate the new leadership of the amalgamated NFB
Private Wealth Management business of Andrew Duvenage
as Managing Director and Mike Estment as Executive
Chairman as well as their revamped executive team and
Board and to wish them well as they embrace the opportunity
of taking this important business to the next level.
2019. In addition to being named the Top Wealth Manager
in South Africa, NFB also won the Top Wealth Manager for
Lump-Sum Investors and the People’s Choice Top Wealth
Manager awards as voted for by South African clients. These
are remarkable accolades that we can all be very proud of.
The year was also characterised by a notable change in gear
with regard to our branding and marketing efforts. This has
been a strategic objective of the business and, as a result of
the right level of investment, focus and effort, is now starting
to translate into a growing profile across our chosen markets.
The Group’s vision is to become the pre-eminent independent
Wealth Management business, with a national distribution
footprint that provides a holistic, integrated client product
and service proposition. The achievements of the past year
have taken us several steps towards realising that goal.
We are extremely proud of the progress NVest has made over
the years, the results achieved during the 2020 financial year,
as well as the broader contribution that the business continues
to make to the local economy and the communities in which
we operate.
RESULTS:
The Group has demonstrated its resilience during the year
under review, delivering consistent results in the context of
particularly challenging operating conditions. Market volatility
locally and abroad on the back of heightened political and
economic uncertainty and weak investor confidence have
contributed to a difficult business environment. Despite these
prevailing headwinds, NVest has maintained its performance in
key areas including top line revenue and headline earnings. This
bears testimony to the resilience and sustainability of NVest’s
operating model and its continued relevance to the market.
Our Private Wealth Management business also added to the
highlights package of the year by walking away with three
awards at the annual Intellidex Awards evening in June
Revenue
increased by
1.26% to
(2019: R306.3 million)
Net Profit After
Tax increased
by 2.56%
(2019: R64.8 million)
Total Group Assets
under Management
and Administration
remained relatively
flat at
Net Asset Value
increased
by 7.06% to
(2019: 149.07 cents
per share)
R310.2
million
R66.5
million
R30.1
billion
as at 29 February 2020 (2019: R30.3 billion).
159.60
cents
The following headlines summarise the financial performance
of the Group for the year under review:
21.62
cents
Headline Earnings
decreased by R64.51
2.20% to
(2019: R65.95 million) million
6.50 cents
Earnings Per
Share increased
by 2.71% to
(2019: 21.05 cents per share)
Net Cash from
operating activities
increased by 3.60% to
(2019: from R68.6 million)
per share
Declaration
of a final
dividend
The total dividend for the 2020 financial year
amounts to 11.75 cents per share which is the same
as was declared for the 2019 financial year.
R71.1
million
NVest Financial Holdings Limited | INTEGRATED ANNUAL REPORT 2020 9