Vunani Capital Partners (VCP), the black-owned financial services company, said they will focus on optimising portfolio performance, unlocking value through strategic disposals, and redeploying capital into attractive opportunities, while maintaining a strong balance sheet in their 2027 financial year.
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Vunani Capital Partners (VCP), the majority black-owned investment group, reported an increase in revenue for the year ended February 28, supported by continued strong growth in cash generated from operations.
The A2X-listed VCP remained profitable, however, reporting a taxed profit of R19,6 million, compared to R77,4m in the prior year. The company attributed the decline primarily to reduced equity-accounted earnings and the absence of significant once-off income recognised in the 2025 financial year.
“Notwithstanding the challenging markets, particularly in the mining sector, VCP demonstrated its resilience and ability to navigate a demanding operating environment. We believe our portfolio remains well diversified across key sectors and that we are well-placed to benefit from opportunities that may arise from improving conditions going forward,” said CEO Mark Anderson.
During the year, the board declared an 8,5 cents financial dividend, an interim dividend of 6 cents, and a second interim dividend of 4 cents. Total cash of R30,9m was paid to shareholders compared to R33,7m in the previous year. In addition, an ordinary dividend of 12,5 cents per share was declared out of income reserves.
He said their plan was to continue to focus on optimising portfolio performance, unlocking value through strategic disposals, and redeploying capital into attractive opportunities while maintaining a strong balance sheet.
Revenue for the period increased to R14,2m compared to R12,9m in the prior period, supported by continued contributions from management fees and underlying investments in the resources, energy, and gaming sectors, as well as the Ditikeni partnerships.
Dividend income increased to R9,3m from R7,3m, reflecting improved distributions from investee companies. Other income declined to R3,8m when compared to R13,8m in the prior period, as the 2025 financial year included material once-off income that did not recur in the prior year.
The resources and energy sector adversely impacted the group’s results, with R46,4m recognised as equity losses due to a combination of low coal prices and logistical challenges.
In addition, Black Wattle Colliery experienced production challenges which have since been resolved. Two investments in Zimbabwean gold mining have been made. Black Wattle has increased production from 80,000 tons per month to 100,000 tons per month.
“With the market environment improving, we should see better results from Black Wattle Colliery,” the company said in its annual report.
“While these are relatively small commitments, they remain attractive opportunities, and we believe they will generate strong returns going forward,” said Anderson.
The gaming sector delivered an improved performance in terms of earnings and cash generation during the year, contributing R39,9m in equity earnings compared to R25,4m in the previous year. The performance of the financial services sector was steady, with earnings of R4,6m.
In the fintech portfolio, the shareholder loan to the Vunani Fintech Fund was capitalised, resulting in VCP retaining a small carried interest. PawaPay continued to perform well operationally; however, this did not translate into a material increase in fair value in the reporting period.
The property sector returned to profitability, contributing R7,4m to group earnings. In addition, VCP allocated capital to multiple property developments and has also started building an 80-unit residential development, Summit Villas, in Sandown, Cape Town. Other opportunities that were close to completion were being assessed.
The three residential developments in Plettenberg Bay and Hout Bay – Langdown Ridge, Boardwalk, and Oxford Rise – as well as the Robberg Bay convenience shopping centre in Plettenberg Bay, were completed.
IWe remain firmly focused on generating sustainable cash flows from our investment portfolio while continuing to deliver value to shareholders in the form of dividends. Our performance in the past financial year has further reinforced our efforts and focus on the generation of returns from our investments,” said Anderson.
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