NVFH 2020 Integrated Annual Report

Subsidiary
Feb 2020
Revenue
Feb 2019
Revenue
Feb 2020 Net
Profit After Tax
Feb 2019 Net
Profit After Tax
NFB Private Wealth Management (Pty) Limited 79 409 318 76 078 118 16 296 260 14 248 132
NFB Finance Brokers Gauteng (Pty) Limited 69 374 209 65 843 111 7 834 147 11 542 499
NFB Finance Brokers Port Elizabeth (Pty) Limited 6 779 468 7 750 915 555 295 1 002 034
NFB Finance Brokers Western Cape (Pty) Limited 475 511 569 622 286 435 -23 939
NFB Asset Management (Pty) Limited 10 605 613 9 262 941 3 347 415 786 944
NFB Insurance Brokers (Border) (Pty) Limited 23 741 145 21 643 291 3 180 899 2 945 355
NVest Securities (Pty) Limited 74 471 494 74 686 453 21 859 639 22 836 142
NVest Properties Limited 53 387 258 52 184 620 3 654 310 4 051 858
NVest Property Services (Pty) Limited 198 698 2 457 957 92 585 64 156
Independent Executor and Trust (Pty) Limited 5 274 809 4 139 630 1 403 108 1 016 420
NVest Financial Holdings Limited 75 917 603 62 291 848 60 411 868 50 277 911
Total 399 634 405 376 908 506 118 921 961 108 747 512
Note: The above figures exclude inter-company eliminations which were performed on consolidation.
A brief synopsis of the year under review per business:
NFB Private Wealth Management (Pty) Limited, had another
strong year growing both revenue and profit in difficult
conditions. On behalf of the Board and Executive team
I would like to congratulate the lead Executive Director
of the business, Gavin Ramsay, for another outstanding
contribution made not only in the context of this subsidiary
but also the collective Private Wealth Management cluster
and across the Group, particularly with regard to our Asset
Management business. I would also like to acknowledge
the entire Advisory team who have all made a valuable
contribution to the collective success of this business. They
have been well supported by a proficient and cohesive
support team throughout the year.
NFB Finance Brokers Gauteng (Pty) Limited, performed to
expectations and grew revenue and assets under management
positively. The Managing Director, Andrew Duvenage, ably
supported by his Operations Director, William Higgs, continue
to play leading roles in the consolidation of the respective
Wealth Management businesses. Their work in this regard has
been exemplary. Andrew has now assumed the position as
Managing Director of the amalgamated NFB Private Wealth
Management (Pty) Limited business –we wish him and his Board
and executive team every success in taking NFB Private Wealth
Management forward. I would also like to thank Mike Estment
for the valuable role that he continues to play in the capacity
as Chairman of NFB Private Wealth Management, ensuring
that the long standing history and experience of the business
remains of value in shaping our future.
NFB Finance Brokers Port Elizabeth (Pty) Limited had a
disappointing year as a result of not meeting expectations
in terms of client and asset acquisition. The ambition of the
business is being rebooted through key appointments and
we are optimistic that Port Elizabeth and environs will be an
area of growth going forward.
The Cape Town NFB Private Wealth Management office
performed to expectation given that the business is in a
process of rationalisation. Cape Town and the wider Western
Cape remains a target geography for future growth.
NVest Securities (Pty) Limited, came through a challenging
year ending circa 4% down from last year based on Net Profit
After Tax. Given the environment and market conditions, this
was a respectable outcome in light of the material drawdown
on key underlying assets (equally weighted top 40 -13% and
Listed Property -26% on a capital basis over the period). Chris
Lemmon, Managing Director of NVest Securities and an
Executive Director on our Group Board, has been central to the
repositioning of our stockbroking business and there has been
continued improvements made in the investment process as
well as the implementation of the business’s new website.
NFB Asset Management (Pty) Limited, had another fantastic
year with gross revenue climbing 15% from the prior year.
Operating profit is recorded as being largely unchanged,
however, this does not account for the significant dividend
income achieved via the business’s investment in NFB
International in Mauritius. This dividend income equates to
circa 25% of gross revenue, but on an after-tax basis. NFB
Asset Management was again nominated for another Raging
Bull Award in the Best Multi Asset Low Equity Fund category
at January’s awards ceremony. NFB Asset Management,
with 5 PlexCrowns for the NFB Ci Stable and Managed
Funds and the business itself, has also successfully retained
its maximum possible rating. The Funds are also 5- and 4-star
rated by Morningstar and have a 5 rating from Lipper. My
congratulations to Managing Director Paul Marais, his team
and the Investment Committee on another strong year.
NFB Insurance Brokers (Border) (Pty) Limited delivered
another solid year of incremental growth in revenue
and profit despite industry headwinds which include the
hardening reinsurance market resulting in reduced capacity
in the placement of large risks and insurers applying stringent
NVest Financial Holdings Limited | INTEGRATED ANNUAL REPORT 2020 11