HCI revenue up 5.4 percent to R25.1 billion

HOSKEN Consolidated Investments (HCI), which has wide ranging interests in the local and international markets, increased revenue by 5.4 percent to R25.1 billion in the year to March.

Profit before tax increased 9 percent to R2.7bn from the previous period, with earnings before interest, tax, depreciation and amortisation rising by 3.8 percent to R6.5bn.

Acquisitions and amortisation saw to the decline in headline earnings by 11.6 percent to R1.0bn from the previous period, while headline earnings per share decreased by 8.8 percent to 1 200 cents per share.

Among the prime contributors to the conglomerate’s fortunes was its properties division, with revenue up by 18 percent, due to additional revenue of R25m from Whale Coast Village Mall, R16m from Shell House, R13m from the Westlake warehouse precinct and R20m from Gallagher Estate, with annual escalations and tenanting efficiencies in the rest of the portfolio responsible for the remaining increase.

Tsogo Sun, Montecasino, Silverstar and Sun Coast Casino all contributed to the 1 percent rise in gaming and hotels revenue, prompting a 6 percent overall net gaming win with casino gaming win increasing by 2 percent.

Mining at the Palesa and Mbali Collieries contributed 22 percent to revenue. Sales volumes at Palesa increased by 35 000 tons (2 percent), with mining contractor inefficiencies leading to reduced volumes up to December 2018, the group said.

eMedia recorded an increase in gross advertising revenue of 4 percent, in a difficult television advertising environment, the group said. Licence fee revenue increased by 5 percent, due to the annual contractual increase. Property and facility revenue in the division increased by 10 percent.

Branded products and manufacturing increased revenue by 10 percent, with growth attributable to the branded product and manufacturing operations.