Might have pulled a smart one
FOR THE last year, Simon Brown and I have been saying we fancy a punt on low-cost housing developer RBA Holdings. Frankly, we grumble about it, especially when you see negative trading updates from the group.
On 13 September the firm told shareholders in its interim results for the six months to 30 June, that its headline loss is expected to be between 2.62c and 2.72c/share compared to headline earnings of 0.44c/share for the comparable period. It cited that only three major projects (Braamfischerville, Southern Gateway and Protea Glen) were being developed.
We had a chuckle when RBA – which battled to raise R10m for another development – announced that it was entering into a joint venture to buy a R42m tract of land in Leondale/ Dawn Park. However, Finweek found that the seller initially had it on the market for R64m, suggesting that there is some value.
*The writer holds shares in RBA Holdings.