IF YOU’RE LOOKING for a diversified stock, this should be it. This counter reported last week that it increased interim dividend/ share 15.1% while earnings/share dropped 35.1%. It’s a substantial knock, yes, driven by refinancing costs of Mediclinic’s rights offer, but consider that health spend is going to increase in the coming years and Remgro now has an effective 45% shareholding in SA’s second largest hospital chain.
If you strip the Mediclinic refinancing costs out, this investment holding stock grew HEPS 18.6%, with earnings climbing to R3.14bn. Its two main money makers, industrials and financials, reported remarkable results amid difficult trading conditions, with headline earnings up 23% and 16% respectively.
If you have investment appetite for Africa, keep a lookout for the fruits of the R500m joint venture – the Pembani Remgro Infrastructure Fund – headed by a man who knows how to make money off Africa, former MTN CEO Phuthuma Nhleko.