Share price: N/A JSE code: MLE
SELL METTLE INVESTMENTS IS A specialist financial services counter that was recently spun out of Christo Wiesecontrolled property counter Tradehold.
The unbundling and separate listing of Mettle was on the cards for a while, but was delayed after proposals to reverse list it into suspended listing Southern View Finance (fingered in the Steinhoff International debacle) were called off.
Older readers might recall that Mettle, in a slightly different form, was briefly (and unremarkably) listed on the JSE between late 1999 and 2003. New-look Mettle consists of SA operations involved in financing, administration and advisory services as well as UK-based operations (under the Reward brand) that provide asset-secured short- and medium-term loans and invoice discounting to the smallto medium-enterprises sector.
Mettle’s recent profit performances have been solid, but the specialist financial services offering might lack the scale to attract serious market players. IM expects the shares to drift down until Mettle can articulate and deliver on an acquisition strategy to bulk up operations markedly. Mettle’s balance sheet precludes too much risk taking, which means that corporate action will be slow and deliberate.