Santova (SNV) investor relations material

Executive summary

• Revenue and net interest income surged 88.3% year-over-year to R1.2 billion, driven by the Seabourne acquisition and increased offshore activity.

• Operating profit rose 3.8% to R200.2 million, while profit for the year declined 7.1% to R137.6 million due to higher costs and integration expenses.

• Offshore revenue reached 84.6% of total, reflecting expanded global presence and successful integration of Seabourne.

• Headline earnings per share (HEPS) decreased 6.2% to 108.10 cents, and tangible NAV per share dropped 29.4% to R4.98.

Financial highlights

• Billings margin improved by 0.3 percentage points to 10.9%.

• Operating margin fell to 16.9% from 30.6% due to lower freight rates and inclusion of lower-margin Seabourne operations.

• Effective tax rate increased to 28.7% from 26.4%, impacted by non-deductible expenses and losses in the US and Singapore.

• Net debt to equity ratio rose to 11.1% following the Seabourne acquisition.

• Debtor days improved to 36.5 from 40.0, and creditor days increased to 23.0 from 18.2.

Outlook and guidance

• Expectation of flat to modest global growth amid ongoing uncertainty, with opportunities for those leveraging AI and automation.

• Focus on acquiring tech-driven supply chain consultancy to enhance digital capabilities and resilience.

• Vigilance in pursuing acquisitions that align with culture and add earnings or competitive advantage.