VUNANI LTD

Our opinion on the current state of VUNANI(VUN)

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Vunani (VUN) is a black-owned financial services group with operations across asset management, investment banking, property, stockbroking, and coal mining. The company's coal interests have recently benefitted from increased coal prices, adding resilience to their diversified portfolio. However, in its latest six-month results to 31st August 2024, Vunani reported a decline in revenue to R327.8 million (from R336.7 million) and headline earnings per share (HEPS) down to 6.7c (from 18.2c in the previous period). The company attributed these declines to challenging global and domestic economic conditions, worsened by geopolitical tensions in Ukraine and the Middle East, which have impacted business confidence.

For private investors, a longstanding issue with Vunani has been its low trading volume. Recently, this liquidity has reduced even further, making it challenging for private investors to enter or exit positions practically.

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