Trematon Capital positions itself for growth
JSE-LISTED Trematon Capital Investments, the Western Cape focused investment holding company, said yesterday that the investment made during the six months to end February would unlock value for the company as it positions itself for growth.
The company sold its 30 percent stake in Mykonos Casino to Tsogo Sun for R190 million and it purchased a portfolio of properties for R614.1m from the Redefine Group.
Chief executive Arnold Shapiro said the motivation behind selling the casino stake was recycling capital and to increase their property portfolio. “The sale of our 30 percent interest in Mykonos Casino and the purchase of the R614.1m portfolio of properties from Redefine Group positions us well to unlock future value through organic growth and to execute on any new opportunities that may arise,” said Shapiro.
During the year under review, the group said its net asset value per share increased 44 cents a share to 299c a share, mainly due to the sale of the stake in Mykonos Casino.
However, the intrinsic asset value per share declined by 7c a share to 361c a share, due to adjustments in the valuations of certain commercial and residential properties and once-off school set-up costs. Assets Trematon celebrates 20 years as a JSE-listed company this year. The company invests in assets and operating businesses which management believes will have the potential to generate an internal rate of return of 20 percent or greater over time. It has four major investments: Club Mykonos Lan- gebaan, Aria Property Group, Resi Investment Group and Generation Education.
The group increased its revenue by 26 percent to R79.8m for the six months to end February, the largest component being rental income. After the sale of the Mykonos Casino shares, net profit after tax amounted to R104.5m, up from R27.8m reported in 2016. Earnings per share rose to 46.4c, up from 8.9c and headline earnings per share increased to 1.8c after a loss of 2.3c in 2016.
Shapiro is confident about the investments made during the period.
The group said it currently has three schools operating. It plans to have 10 schools by 2019. Trematon shares rose 5.77 percent on the JSE yesterday to close at R2.75.