Brait’s shares dive as its value dwindles


Brait’s shares dive as its value dwindles

Published Date: 2019-05-24 | Source: Stephen Gunnion | Author: Stephen Gunnion

Brait’s shares dive as its value dwindles

The ground has revalued its investments due to a decline in the value of their respective peer groups.

Brait's shares slumped as much as 12.6% yesterday after it warned investors that its net asset value (NAV) declined by as much as 27% over the past year.

In a trading statement, the investment group said its NAV per share for the year to end-March was expected to be between R40.75 and R42.85, representing a reduction of between 23.4% and 27% from a year earlier. It said a challenging operating environment had resulted in the decline of the respective peer group average multiples for each of its portfolio companies. To maintain historic levels of discount to these averages, it's reduced the value for its investments in gym chain Virgin Active, food-moving consumer goods group Premier and UK supermarket chain Iceland. The carrying value of its equity investment in struggling UK women's fashion chain remains at zero.

Earlier this month, New Look cut its debt by £1 billion following a restructuring of its balance sheet that cut Brait's stake in the UK fashion chain to 18.5%.

It expects to publish its result around the 18th of June.

Its shares closed 12.4% down at R20.45.

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