ASSET manager and stock brokerage Barnard Jacobs Mellet (BJM) is looking towards sector and stock specific research in selected African jurisdictions for long-term growth, as recovery from the global credit crisis may take time.
That is the message from BJM Securities CEO Andrew McNulty He said in the latest annual report that the development of services to a broader client base was another avenue of growth to be explored.
The company, which derives most of its revenue from stockbroking income, reported a 36,8% decline in headline earnings to 36,3c a share in the year to March.
Headline earnings fell 44,5% to R29,96m. Dividends paid out halved to R12$8m from R26,56m.
RIM CEO Andile Mazwai was paid out 4% less than the previous year? R7,35m from R7,64m.
In the past year revenue fell 2,5% to R505,99m, with R387m of it derived from stock broking.
The contribution from corporate finance more than doubled to R47,1m from R22,2m, interest income fell to R31,6m from R44,3m, while income from settlement and prime broking and portfolio management was marginally lower.
There was R200,5m in cash and its equivalents in hand at year end.
McNulty said trading levels at the UK and US subsidiaries were expected to remain depressed for some time, but quality research, systems investment and "client-centric service" were expected to drive longer-term growth.
BJM Corporate Finance CEO Cobus Human said the after-tax contribution from the corporate finance division in the 18 months since the Quaestor Capital acquisition had offset the purchase price.
In spite of tougher mergerand acquisition conditions in general, "the deal pipeline continues to look healthy", he said.
BJM Private Client Services CEO Jan van Staden said the multimanager unit trust range had attracted inflows in its first year, while the newly acquired insurance brokerage had been integrated.
The division, a wealth service provider to high net worth individuals, was in the process of securing its own JSE stock-broking licence, in anticipation of regulatory changes.
The launch of an international property fund to create access to oversold offshore property markets ahead of a "predicted recovery in 2010 and beyond" was imminent.
The division was also expanding into trust and fiduciary services.
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