Short and sweet
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).