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SABVEST CAPITAL LIMITED - Salient features extracted from summarised AFS for the year ended 31/12/2023 and cash dividend declaration

Release Date: 19/03/2024 16:45
Code(s): SBP     PDF:  
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Salient features extracted from summarised AFS for the year ended 31/12/2023 and cash dividend declaration

SABVEST CAPITAL LIMITED
Incorporated in the Republic of South Africa
Registration number 2020/030059/06
"Sabcap" or "the Group" or "the Company"
ISIN: ZAE000283511
JSE share code: SBP

SALIENT FEATURES EXTRACTED FROM THE SUMMARISED ANNUAL FINANCIAL 
STATEMENTS for the year ended 31 December 2023
and cash dividend declaration

PROFILE

Sabvest Capital Limited ("Sabcap") is an investment group first 
listed on the JSE in 1988 as Sabvest Limited and as Sabcap from 
2020. The Seabrooke Family Trust ("SFT") has voting control of 
Sabcap through an unlisted Z share and has an economic interest of 
40,8% through its holding in the listed ordinary shares. During 
2023, the Company repurchased and cancelled 330 000 ordinary 
shares previously held by its subsidiary, Sabvest Finance and 
Guarantee Corporation (Pty) Ltd. Accordingly, the number of shares 
in issue at year-end, was 39 220 000 ordinary shares (31 Dec 2022: 
39 400 000 net of treasury shares).

Sabcap has interests in thirteen unlisted and three listed 
investments, all accounted for on a fair value basis. Sabcap's 
primary focus is on industrial and service businesses, usually 
unlisted and co-invested with family, management or financial 
partners in terms of Sabcap's Partnership Principle. Sabcap also 
makes finance advances and holds listed debt, equity and cash 
portfolios when it has surplus liquidity, and undertakes other fee 
and profit earning activities from time to time.

RESTATEMENT

During the current year, the Company's subsidiaries have been 
reclassified as investment entities under IFRS 10 and the 
financial statements have been restated to cease consolidating the 
subsidiaries. The Company's investment in Sabvest (Pty) Ltd 
("Sabvest") has since been measured at Fair Value Through Profit 
and Loss ("FVTPL") as opposed to the historical measurement at 
cost less accumulated impairment loss. Similarly, Sabvest's 
investments in Sabvest Finance and Guarantee Corporation (Pty) Ltd 
and Sabvest Investments (Pty) Ltd have been measured on the same 
basis. The restated net asset value ("NAV") is the same as the NAV 
of the previously consolidated group for the comparative periods, 
as the fair value of the investment entities remain unchanged. 
Pursuant to Sabcap accounting as an investment entity, the layouts 
of the Company's statement of financial position, statement of 
comprehensive income and statement of cash flows were aligned to 
the disclosure requirements for investment entities under IFRS 10 
and to the format presented by other investment entities. This 
results in fair value accounting now being reflected in the 
Company financial statements in the investments line as opposed to 
the previously presented consolidated statements that had some 
assets and liabilities separately disclosed.

RESULTS

                                        % 
                                   change       2023       2022

Net asset value per share – cents   (0,7)     10 936     11 017
(Loss)/earnings and headline 
(loss)/earnings per 
share – cents *                   (100,6)      (11,0)   1 721,7
Dividends per share – cents            –          90         90
Total comprehensive 
(loss)/income – R'm               (100,6)       (4,3)     679,6
Shareholders' funds – R'm           (1,2)    4 289,3    4 340,9

* 2022 restated to align with the disclosure requirements for 
  investment entities under IFRS 10 Consolidated Financial 
  Statements (refer to annual financial statements).

GROWTH METRICS

Sabcap's primary financial metric is growth in NAV per share. The 
15-year compound annual growth rate (CAGR) in NAV per share to the 
2023 year-end was 17,2%, calculated without reinvesting dividends. 
The CAGR after reinvesting dividends was 18,5% (calculated with 
dividends notionally not paid and the amounts notionally retained 
by the Company, growing at 10% per annum). 

The growth in share price itself over different periods is set out 
in the table below. The growth rate over one year was (7,9%) and 
the CAGR over 15 years was 18,0%.

                                     Percentage Compound Growth
                                     1 year   3 years   5 years
                            Cents         %         %         %

NAV per share              10 936      (0,7)     13,7      13,3
Market price per share *    7 700      (7,9)     37,3      12,3

GROWTH METRICS (continued)

                                     Percentage Compound Growth
                                            10 years   15 years
                                                   %          %

NAV per share                                   16,6       17,2
Market price per share *                        14,6       18,0

* The one-year CAGR is calculated using the Sabcap share price, 
  with the remaining CAGRs calculated with reference to the 
  weighted average share prices of the Sabvest ordinary and 'N' 
  ordinary shares.

RESULTS SUMMARY

High inflation, logistical challenges, high raw material prices 
and higher interest rates continued to provide a challenging 
environment for the group's investees to operate in. Apex, ARB, 
Masimong, SA Bias and Sunspray performed well. Results at Corero, 
DNI, Flexo, Metrofile, Rolfes and Valemount were satisfactory. 
Halewood's results were weak in difficult trading conditions in 
RSA. ITL's results were much poorer than expected due to soft 
northern hemisphere retail demand, product mix and margin  changes 
from trading down and destocking, and sourcing moving to higher 
cost locations due to geo-political pressures. The market value of 
the shares held in TC fell considerably after incurring 
substantial losses in SA Taxi due to materially higher provisions 
required and a complete restructure of its business model 
initiated.  Altify and Versofy as start-ups are carried at zero. 
Classic Food Brands was sold at nominal value.

These conditions have resulted in a slight decrease in NAV per 
share to 10 936 cents per share, being a 0,7% decrease from NAV 
per share of 11 017 at the 2022 year-end reporting date. Although 
a small decrease, it is the first reduction in NAV per share in a 
single reporting period for over twenty years. Notwithstanding, 
the growth metrics table shows the growth rates over periods from 
3 to 15 years being 13,7% at 3 years to 17,2 % to 15 years 
compounded, and 18,5% with dividends reinvested.

Final DPS was maintained at 60 cents per share, resulting in the 
interim and final dividends totalling 90 cents per share, 
remaining constant with the prior year. Share buybacks were R11,8m 
during the period (31 Dec 2022: R9,5m).

INVESTMENT HOLDINGS
as at 31 December 2023

The Company's investment holdings includes the fair value of the 
its investment in Sabvest (Pty) Ltd and comprises mainly of the 
fair value of the investments, assets and liabilities held by the 
underlying subsidiaries, summarised as follows:

                                                         Number
                                                             of
                            Listed/                    ordinary
                          Unlisted    Sector *1    shares/units

INVESTMENTS  

Altify (previously Revix UK)     U           FT 
Apex Partners Holdings 
(Pty) Ltd                        U           IS 
ARB Holdings (Pty) Ltd           U           IS 
Corero Network Security Plc      L           FT      51 000 000
DNI-4PL Contracts (Pty) Ltd      U           FT 
Flexo Line Products (Pty) Ltd    U           IS 
Halewood International 
South Africa (Pty) Ltd           U           IS 
ITL Holdings Group               U           IS 
Masimong Group Holdings 
(Pty) Ltd                        U          MCA 
Metrofile Holdings Limited       L           IS      57 000 000
Rolfes Holdings (Pty) Ltd        U          MCA 
SA Bias Industries (Pty) Ltd     U           IS 
Sunspray Food Ingredients 
(Pty) Ltd *3                     U           IS 
Transaction Capital Limited      L           FT       6 000 000
Valemount Trading (Pty) Ltd      U           IS 
Versofy (Pty) Ltd                U           IS 

INVESTMENTS (continued)

                                       Economic            Fair
                                       Interest *2        value
                                              %           R'000

Altify (previously Revix UK)               16,1               –
Apex Partners Holdings (Pty) Ltd           45,3         584 590
ARB Holdings (Pty) Ltd                     18,5         357 357
Corero Network Security Plc                10,0          99 039
DNI-4PL Contracts (Pty) Ltd                19,7         990 446
Flexo Line Products (Pty) Ltd              47,5          30 526
Halewood International South Africa 
(Pty) Ltd                                  19,0          91 637
ITL Holdings Group                         34,4         499 147
Masimong Group Holdings (Pty) Ltd           9,0         475 805
Metrofile Holdings Limited                 13,5         171 000
Rolfes Holdings (Pty) Ltd                  24,7         160 770
SA Bias Industries (Pty) Ltd               85,2       1 269 671
Sunspray Food Ingredients (Pty) Ltd *3     27,7         138 189
Transaction Capital Limited                 0,8          47 880
Valemount Trading (Pty) Ltd                39,3          55 512
Versofy (Pty) Ltd                           3,8               –
Interest-bearing borrowings                            (613 606)
Deferred tax liability                                 (147 249)
Cash on hand                                             41 943
Other net assets                                         39 069
                                                      4 291 726

*1 IS – Industrial and Services; MCA – Mining, Chemicals and 
   Agriculture; FT – Specialised Financial and Technology.
*2 Represents the economic interest at 31 December 2023.
*3 Includes the 16,6% interest held-for-sale.

PROSPECTS

Sabcap is comfortable with the growth prospects of all its 
unlisted long-term investments although the timing of the recovery 
at ITL may be longer in the RSA operations than internationally 
and at a higher cost. The values of its three listed investments 
are determined by their share prices. The trading results of 
Corero and Metrofile are expected to be satisfactory but the 
timing and extent of recovery at TC remain uncertain although good 
progress is being achieved.

Sabcap expects to resume satisfactory growth in NAV per share in 
2024. 

Management regards Sabcap as fully invested at the present time 
but continues to consider acquisitions and investment 
opportunities in its investees.

References to future financial information in this announcement 
have not been reviewed or reported on by the Group's auditors.

CASH DIVIDEND DECLARATION

Notice is hereby given that a final dividend of 60 cents (2022: 60 
cents) per ordinary share for the year ended 31 December 2023 has 
been declared out of income reserves making a total of 90 cents 
for the year (2022: 90 cents). 

The issued share capital of the Company at the declaration date is 
39 220 000 ordinary shares. The income tax number of the Company 
is 9660061186. Withholding tax on dividends at a rate of 20% will 
be deducted for all shareholders who are not exempt in terms of 
the applicable legislation. This will result in a final net cash 
dividend of 48 cents per ordinary share to non-exempt 
shareholders. 

Last date to trade "CUM" dividend        Tuesday, 16 April 2024
Trading "EX" dividend commences        Wednesday, 17 April 2024
Record date                               Friday, 19 April 2024
Dividend payment date                     Monday, 22 April 2024

No dematerialisation or rematerialisation of share certificates 
will be allowed during the period Wednesday, 17 April 2024 to 
Friday, 19 April 2024, both days inclusive.

Sandton
19 March 2024

This announcement, prepared by the directors, has itself not been 
audited, however, the financial information included herein has 
been correctly extracted from the audited annual financial 
statements (the "results") which have been audited by 
PricewaterhouseCoopers.

This announcement is a summary of information in the results and 
does not contain full or complete details. Any investment 
decisions by investors and/or shareholders should be based on the 
results. The results and summarised results, including the audit 
opinion of the external auditor, PricewaterhouseCoopers, which 
sets out the key audit matters and the basis for its unmodified 
opinion, are available on the JSE's cloudlink at 
https://senspdf.jse.co.za/documents/2024/JSE/ISSE/SBPE/YEres23.pdf 
and published on the Company's website on 
http://www.sabvestcapital.com/pdf/2023/YE-results-Dec23.pdf 
and http://www.sabvestcapital.com/pdf/2023/AFS-Dec23.pdf 
on 19 March 2024.

REGISTERED ADDRESS: 
4 Commerce Square, 39 Rivonia Road, Sandhurst, Sandton 2196 

COMMUNICATIONS: 
Postal address: PO Box 78677, Sandton 2146, Republic of South 
Africa 

Telephone: (011) 268 2400 
Fax: (011) 268 2422 
e-mail: ho@sabvest.com 

TRANSFER SECRETARIES: 
Computershare Investor Services (Pty) Ltd, Rosebank Towers, 15 
Biermann Avenue, Rosebank 2196 (PO Box 61051, Marshalltown 2107) 

DIRECTORS: 
K Pillay # (Chairperson), O Ighodaro # (Lead Independent 
Director), CS Seabrooke * (Chief Executive), BJT Shongwe # 
L Mthimunye #,  K De Matteis *, L Rood 

*Executive      #Independent 
 
SPONSOR: 
Rand Merchant Bank (A division of FirstRand Bank Limited), 1 
Merchant Place, Corner of Fredman Drive and Rivonia Road, Sandton 
2196

COMPANY SECRETARY: 
Levitt Kirson Business Services (Pty) Ltd

www.sabvestcapital.com

Date: 19-03-2024 04:45:00
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