Short and sweet

Finweek English Edition - - Companies & markets - FROM THE AN­NUAL RE­PORT MARC HASENFUSS

WISE IN­VESTORS would hold that an­nual re­ports should have less glossy snaps of the HQ and direc­tors’ mugshots and more rel­e­vant fi­nan­cial data and com­men­tary for share­hold­ers to pe­ruse.

Tre­ma­ton Cap­i­tal In­vest­ments* does a pretty good job in its an­nual re­port, which show a com­pany un­der­go­ing a rather in­ter­est­ing trans­for­ma­tion un­der CEO Arnold Shapiro.

The most im­por­tant change is that Tre­ma­ton has con­sid­er­ably less­ened its reliance (in terms of net as­set value) on Lon­don-listed tech­nol­ogy com­pany Intec Tele­com Sys­tems.

Not too long ago, Intec – which en­joys a rather volatile share trad­ing pat­tern – was the sole un­der­pin of Tre­ma­ton’s NAV.

The an­nual re­port shows that Tre­ma­ton has qui­etly ac­cu­mu­lated a cou­ple of promis­ing in­vest­ments – most no­tably 1,1m shares in gam­ing group Grand Pa­rade In­vest­ments (GPI) and 1,3m shares in the GPI SPV Trust as well as 2,1m shares in Club Mykonos Lange­baan Lim­ited (which owns a chunk of the Mykonos Casino).

The group has dis­posed of its shares in Spearhead prop­erty, but it holds 55m shares in Shops for Africa (a list­ing that could soon be rein­vig­o­rated) as well as 6m Madi­son Prop­erty Fund Man­agers shares. Tre­ma­ton also owns 50% of Sta­lag­mite Prop­erty Hold­ings, which is de­vel­op­ing land in the Strand in the West­ern Cape.

Tre­ma­ton’s un­listed port­fo­lio now com­prises 18,5% of NAV, with prop­erty in­ter­ests ac­count­ing for an­other 17% of NAV.

One po­ten­tial draw­back in broad­en­ing the in­vest­ment port­fo­lio is that Tre­ma­ton may be a tad short on fire­power to hunt down new op­por­tu­ni­ties or broaden ex­ist­ing in­ter­ests. Cur­rent as­sets are re­flected as R22m (com­pris­ing cash of R7m and a bro­ker­age ac­count of R15m).

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