Trematon profit up 276% after deals

Trematon Capital Investments has boosted its profit significantly following the conclusion of several deals in the six months to February.

The investment holding company reported a profit for the six months to February 2017 of R104.48m, about 276% higher than the R27.8m profit in the six months to February 2016.

Trematon is celebrating its 20th year as a JSE-listed company this year. It invests in assets and operating businesses which management believes will have the potential to generate an internal rate of return of 20% or greater over time.

The company’s operations are not limited to a specific commercial area but strongly focused on property-related investments, especially in the Western Cape, according to CEO Arnold Shapiro. It also invests in an education business called Generation Education and owns part of the Club Mykonos resort.

Gross assets grew to R1.36bn from R1.19bn at year end. Further property acquisitions worth R614.1m had not yet been transferred at the reporting date.

“We have made careful material investments in the past 18 months. This includes the deal we made with Redefine Properties where we bought seven assets for R614m and substantially increased the size of our real estate subsidiary, ARIA Property Group.

“The properties are in the process of being transferred and will be included in the accounts at our year end, being August 31 2017,” said Shapiro.

Trematon also sold out of part of the Club Mykonos resort investment at Langebaan during the period.

“Since 2008 Club Mykonos has been a major component of the group’s net asset value and has delivered good growth, but the value extraction process for the existing assets has run its course and the focus will now shift to development of the remaining land,” said Shapiro.

Anthony Clark, Vunani Securities’ financial and industrial small- and medium-marketcap analyst, said Trematon would have a net asset value of R2bn once all of its recent deals were completed. The group had long-term growth potential and was run by a strong team.

Company comment: page 13