Sabvest’s listed portfolio takes a knock


Sabvest’s listed portfolio takes a knock

Published Date: 2019-08-13 | Source: Stephen Gunnion | Author: Stephen Gunnion

Sabvest’s listed portfolio takes a knock

The investment holding company says a number of its listed investments should show an improvement in the period ahead.

Sabvest has raised its interim dividend, despite reporting a sharp decline in first-half earnings as its listed investments came under pressure.

The investment holding company has increased its dividend for the six months to end-June by 12.5% to 36c per share. Unlike last year, it hasn't declared a special dividend.

Total comprehensive income for the period declined by 83% to R38.6 million and profit after tax fell 67% to R52.6 million, largely due to fair value losses of R114 million on direct and indirect listed investments and foreign exchange losses of R6.9 million. Headline earnings per share declined by 64% to 125.7c. Its net asset value increased by 8.2% to R59.08.

Sabvest has interests in eight unlisted investments, direct and indirect interests in six listed companies and an offshore bond portfolio. It accounts for all of those on a fair value basis.

Its listed portfolio was worth R471 million at the end of June, down from R567 million a year earlier, due to sharp declines in the values of Brait, Corero Network Security, Metrofile and Rolfes Holdings. Its investment in Net 1 UEPS Technologies was marginally lower, while its interest in Transaction Capital was worth more at the end of June.

Its portfolio of unlisted investments rose in value to R2.19 billion from R1.71 billion.

During the period, it increased its holdings in Metrofile and Rolfes and disposed of its 200,000 units in Value Capital Partners Fund for R26.9 million. It also bought a 10% stake in Masimong, which has a portfolio of high-performing growth assets including interests in Seriti Coal and Lephalale Coal and Power.

The group said uncertainties surrounding the refinancing of Brait's balance sheet were expected to be resolved in the period ahead. It also expected an improvement in the performances of Corero and Metrofile.

Its shares closed 0.1% down at R43.85 yesterday. It released its results after the close of trade.

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