StratCorp’s loan sinks
Pool maintenance group looks in trouble
TWO WEEKS AGO our cover story – headlined “Hell to pay” – surveyed the value remaining in the surfeit of unlisted venture capital companies peddled to investors over the past 12 years. In that report Finweek was unable to estimate the value left in three recent projects – APMI Holdings, Supertow International and GlobalJewel – because their long overdue audited financial statements weren’t made available.
But shareholders in those three companies should be able to get an inkling of what their investments are worth by looking at the annual report for listed financial services counter StratCorp – a strategic investor in all three companies, holding 15% of APMI, 13% of GlobalJewel and 11% of Supertow. (See story on p38.)
StratCorp’s annual report states those investments are classified as “held for trading” and are carried at cost, as fair value can’t be determined. However, the notes to StratCorp’s results put a “fair value” – net asset valuation – on the unlisted investments. Its 11% stake in Supertow is valued at R3m (well up on last year’s R605 000) and its 13% stake in GlobalJewel is now worth R18m (last year: R6m).
How StratCorp calculated those valuations is uncertain because – as far as Finweek can ascertain – neither Supertow nor GlobalJewel has issued audited financial statements.
It does seem StratCorp has made a very definitive call on APMI. This unlisted venture capital company – which markets the Poolcop automated swimming pool maintenance system – is accorded no value by StratCorp. Last year its 11% stake in APMI was worth R445 000.
Perhaps the “write off ” in value isn’t surprising, seeing that StratCorp had to impair a R1,4m loan to APMI. That loan was secured by a pledge of 5m shares by APMI as well as a general notarial bond on all floor stock. StratCorp advised in its annual report it took cession of stock to the value of R1,4m with no mention made of the pledged shares.