Premier and New Look boost Brait

BRAIT’s net asset value more than doubled in the year ended June, but that was outweighed by it going exdividend, sending its share price down 5%.

The investment holding company said yesterday the net asset value of each share was R80.34, up 141.8% in 12 months. UK clothing chain New Look, in which Brait acquired a majority stake in June, contributed more than half of that increase.

The purchase price was just more than five times its £178.9m operating profit for the year to end-March.

Brait executive director Mark Parsons said New Look had recently shown doubledigit growth in earnings and its operating model was difficult to replicate. He was confident Brait had not overpaid.

Food company Premier’s net asset value surged 174.97% on the previous year.

“Premier’s carrying value is a function of strong operational performance during its 2015 financial year and strong cash flow generation,” Mr Parsons said.

Premier’s earnings rose 70% for the nine months to end-March. Brait has raised its stake in Premier by 1.9%.

In its portfolio of other investments, net asset value rose 53.2% on a strong showing from alcohol producer and distributor DGB.

Brait’s update did not include its £691m acquisition of gym chain Virgin Active. “The initial impact on Brait’s net asset value is neutral,” Mr Parsons said.

The group, in which Richard Branson has kept a minority stake, has scope for growth in Africa and Asia.