Tre­ma­ton Cap­i­tal po­si­tions it­self for growth

The Star Late Edition - - COMPANIES - Sandile Mchunu net

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.

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