Afinitas Limited – that owns substantial stakes in three main operating businesses: Africa Events Limited, Adventis Limited and Ethiopian Investments Limited – has unveiled its 2018 results. Afinitas also owns a minority stake in Icecap Trust Holdings.
Company directors are happy with the performance so far. “Management focus during 2018 was on increasing revenue in all the different businesses. The result was a 65% increase of gross revenue from $430,409 to $711,310. All three main operating businesses are now generating income. This strong growth in income is pleasing, and management is focused on ensuring the growth in income continues. We expect the FY2019 full year results to demonstrate another year of strong revenue growth – with growth coming from all three of our main operating businesses and Icecap Trust Holdings. Each operating business now has established systems, teams, processes and corporate structures in place that allow them to grow revenue within their current cost structure. Accordingly in 2018, despite the 65% growth in revenue, other operating expenses only rose by 6%. As a result, we expect that Afinitas Limited will demonstrate a continued improvement in financial results as the various companies develop new recurrent revenue streams while maintaining a reasonably static cost base. Investor interest in Africa is rising, albeit from a low base in recent years, and it is our belief that Africa is the most exciting and potentially rewarding investment destination globally. Our jointly owned AFSIC event continues to grow into the most important Africa investment event globally and will show its 6th continuous year of strong growth in 2019 with record attendance likely. Within Adventis, our Africa focused asset management company; a large amount of time during the year was necessarily spent on obtaining the various regulatory approvals needed in order to market a wider range of product including an exciting pan African equity strategy and an enhanced income Africa debt strategy. Most of these approvals are now in place allowing marketing to commence in earnest. Many additional initiatives, apart from fund strategies, are being examined each of which could prove attractive to global investors. Adventis is run by one of Africa’s most experienced investors. In Ethiopia EQOS, the country’s first business process outsourcing firm, continues to pick up new clients and recurrent income. Ethiopia has a large, well educated, low cost workforce, and has the potential to become the world’s leading Business Process Outsourcing location as costs rise in other locations, and EQOS is well positioned to benefit from this. In conclusion the Directors are looking forward to ensuring Afinitas achieves another year of strong revenue growth for the 2019 Financial Year. Dividend The Board has approved the audited financial statements and determined that no dividend will be payable for the period,” the company said.