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Salient features of the unaudited results for the six months ended 30 June 2024 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 OF THE UNAUDITED RESULTS for the six months ended
30 June 2024 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
41,6% through its holding in the listed ordinary shares. At the
end of the reporting period Sabcap had 38 470 000 shares in issue
net of treasury shares (31 Dec 2023: 39 220 000).
Sabcap has long-term 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 prior year, the Company's subsidiaries were
reclassified as investment entities under IFRS 10 and the
financial statements restated to cease consolidating the
subsidiaries. The Company's investment in Sabvest (Pty) Ltd
("Sabvest") is now 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 are measured on the same basis. The restated
net asset value ("NAV") for the comparative period is the same as
the NAV of the previously consolidated group for the comparative
period, 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
% %
increase increase
30 June 30 June
2024 2024
compared compared
to to
31 December 30 June Unaudited Unaudited
2023 2023 30 Jun 30 Jun
– 6 months – 12 months 2024 2023
Net asset value
per share – cents 7,8 2,8 11 786 11 465
Shareholders'
funds – R'm 5,7 0,4 4 534,0 4 515,9
Dividends per
share – cents 16,7 35 30
Total comprehensive
income/(loss) – R'm 60,3 319,8 199,5
Earnings/(loss) and
headline earnings/(loss)
per share – cents *1 63,2 826,1 506,3
Number of shares in
issue less held in
treasury – 000's 38 470 39 390
Weighted average number
of shares is issue – 000's 38 711 39 394
RESULTS (continued)
Audited
31 Dec
2023
Net asset value per share – cents 10 936
Shareholders' funds – R'm 4 289,3
Dividends per share – cents 90
Total comprehensive income/(loss) – R'm (4,3)
Earnings/(loss) and headline earnings/(loss)
per share – cents *1 (11,0)
Number of shares in issue less held in
treasury – 000's 39 220
Weighted average number of shares is issue – 000's 39 354
*1 There are no diluting instruments.
GROWTH METRICS
Sabcap's primary financial metric is growth in NAV per share. This
is measured annually and growth rates over different periods are
included in the year-end results. The 15-year compounded annual
growth rate in NAV per share to the 2023 year-end was 17,2%,
calculated without re-investing dividends. The compounded annual
growth rate in NAV per share over 15 years with dividends
reinvested was 18,5%*. The 15-year compound annual growth rate in
the share price was 18,0%^.
* Calculated with dividends notionally not paid and the amounts
notionally retained by the Company growing at 10% per annum.
^ Calculated with reference to the weighted average share prices
of the Sabvest ordinary and 'N' ordinary shares.
RESULTS SUMMARY
Improved trading conditions during the period have assisted in
alleviating some of the demand pressures experienced by the
investees in prior periods. This, coupled with significant cost
cutting exercises implemented in many of the investees, have
resulted in improved profitability. Apex, Corero, Flexo, ITL and
Sunspray performed well during the period, and in particular, the
repositioning strategy at ITL was implemented very effectively.
The market value of the shares held in Transaction Capital ("TC")
continues to be depressed due to the large losses at SA Taxi and
the ongoing debt restructure. Altify and Versofy as start-ups are
carried at zero.
Sabcap is pleased to report an increase in NAV per share to 11 786
cents, being a 2,8% increase from NAV per share of 11 465 cents at
the 30 Jun 2023 comparative period, and a 7,8% increase from the
NAV per share of 10 936 cents at the 31 Dec 2023 reporting period.
Term debt in subsidiaries was reduced from R600m at year-end to
R460m primarily from the proceeds of the sales of some of the
holdings in Sunspray and Metrofile (as announced on SENS and
detailed in the long-form announcement) and the proceeds of the
WeBuyCars shares received after their unbundling by TC.
An interim dividend of 35 cents per share has been declared, being
a 16,7% increase on the 2023 interim dividend of 30 cents per
share. In addition, R51,7m (twelve months to 31 Dec 2023: R11.6m)
(six months to 30 Jun 2023: R0,8m) was allocated to buybacks of
Sabcap shares during the period.
INVESTMENT HOLDINGS
The Company's investment holdings include the fair value of 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 as at 30 June 2024:
Number of
Listed/ ordinary
Unlisted Sector *1 shares/units
INVESTMENTS *1
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 52 000 000
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 21 000 000
Rolfes Holdings (Pty) Ltd U MCA
SA Bias Industries (Pty) Ltd U IS
Sunspray Solutions (Pty) Ltd U IS
Transaction Capital Limited L FT 6 000 000
Valemount Trading (Pty) Ltd U IS
Versofy (Pty) Ltd U IS
INVESTMENT HOLDINGS(continued)
Economic Fair
Interest *2 value
% R'000
INVESTMENTS *1 5 084 078
Altify (previously Revix UK) 16,1 –
Apex Partners Holdings (Pty) Ltd 46,4 686 294
ARB Holdings (Pty) Ltd 18,5 403 388
Corero Network Security Plc 10,2 173 905
DNI-4PL Contracts (Pty) Ltd 19,7 973 642
Flexo Line Products (Pty) Ltd 47,5 66 338
Halewood International South Africa
(Pty) Ltd 19,0 124 036
ITL Holdings Group 34,4 575 939
Masimong Group Holdings (Pty) Ltd 9,0 489 897
Metrofile Holdings Limited 5,0 63 210
Rolfes Holdings (Pty) Ltd 24,7 179 546
SA Bias Industries (Pty) Ltd 86,0 1 214 288
Sunspray Solutions (Pty) Ltd 11,1 57 558
Transaction Capital Limited 0,8 17 400
Valemount Trading (Pty) Ltd 39,3 58 637
Versofy (Pty) Ltd 3,8 –
Interest-bearing borrowings (466 486)
Deferred tax liability (138 069)
Cash on hand 36 548
Other net assets 19 564
4 535 635
*1 IS – Industrial and Services; MCA – Mining, Chemicals and
Agriculture; FT – Specialised Financial and Technology.
*2 Represents the economic interest at 31 December 2023.
PROSPECTS
Sabcap is satisfied with the performance of most of its unlisted
investees in difficult trading conditions, and confident that the
few negatively affected to date will show stronger trading
positions by year-end. The values of its listed investments are
determined by market prices, except for Metrofile which has been
valued in accordance with the provisions contained in the share
purchase agreement. The trading results of Corero are expected to
show good continuing growth. Metrofile's results to date have been
weaker than expected but turnaround prospects remain satisfactory.
The restructure at TC, and SA Taxi in particular, continue to
progress but the outcomes are not yet predictable.
Sabcap expects satisfactory growth in NAV per share for the 2024
financial year.
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 an interim dividend of 35 cents (2023:
30 cents) per ordinary share for the six months ended 30 June 2024
has been declared out of income reserves.
The issued share capital of the Company at the declaration date is
38 470 000 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 net cash
dividend of 28 cents per ordinary share to non-exempt
shareholders.
Last date to trade "CUM" dividend Tuesday, 10 September 2024
Trading "EX" dividend commences Wednesday, 11 September 2024
Record date Friday, 13 September 2024
Dividend payment date Monday, 16 September 2024
No dematerialisation or rematerialisation of share certificates
will be allowed during the period Wednesday, 11 September 2024 to
Friday, 13 September 2024, both days inclusive.
Sandton
21 August 2024
The above announcement is a summary of information in the
unaudited results for the six months ended 30 June 2024 ('interim
results') and does not contain full or complete details and is the
responsibility of the directors. Any investment decisions by
investors and/or shareholders should be based on the interim
results which is available on
https://senspdf.jse.co.za/documents/2024/JSE/ISSE/SBPE/Int24.pdf
and published on the Company's website on
http://www.sabvestcapital.com/pdf/2024/IntRes24.pdf on 21 August
2024.
SABVEST CAPITAL LIMITED
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 (Private Bag X9000, Saxonwold 2132)
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: 21-08-2024 08:00:00
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