Trade­hold’s for­tunes have been turned around


IN­VEST­MENT hold­ing com­pany Trade­hold has said that its de­ci­sion to exit non-core as­sets had turned its for­tunes around and al­lowed it to con­cen­trate its ef­forts on the prop­erty busi­ness.

The group yes­ter­day said that the of­fload­ing of the as­sets had re­sulted in a more fo­cused busi­ness.

It said that it had iden­ti­fied a fur­ther 37 prop­er­ties with a to­tal value of R1 bil­lion for sale.

“The pro­ceeds from sales will pre­dom­i­nantly be used to re­duce debt. A num­ber of these build­ings have al­ready been sold, oth­ers are await­ing trans­fer or the out­come of due-dili­gence pro­cesses,” the group said.

The group un­bun­dled its fi­nan­cial ser­vices in­ter­ests to share­hold­ers and listed Met­tle In­vest­ments sep­a­rately on the Al­ter­na­tive ex­change (AltX) on the JSE in May.

Trade­hold said the un­bundling has turned it into a ded­i­cated prop­erty busi­ness with net as­sets split be­tween the UK and Africa.

Trade­hold said the UK port­fo­lio con­sisted of 40 per­cent of its to­tal op­er­a­tions, while the US dol­lar as­sets in Africa held 8 per­cent of the busi­ness, with the re­main­ing 52 per­cent be­ing in South African rand.

Trade­hold said the re­struc­tur­ing made its per­for­mance dur­ing the six months to end Au­gust not di­rectly com­pa­ra­ble with last year.

It said to­tal as­sets for the pe­riod amounted to £843.7 mil­lion (R15.5 bil­lion), down from £994m last year. It said to­tal as­sets for 2017 would have amounted to £929m if fi­nan­cial ser­vices were ex­cluded.

The group re­ported a to­tal profit at­trib­ut­able to share­hold­ers of £5.7m, down from £10.8m.

“The de­crease is mainly due to the loss dur­ing the re­port­ing pe­riod in the fair-value ad­just­ment of its in­vest­ment prop­er­ties of £2.1m, com­pared to a gain of £1.6m in the cor­re­spond­ing pe­riod in the 2017 fi­nan­cial year, and fi­nan­cial ser­vices net profit of £2.9m in the prior pe­riod, com­pared to profit from dis­con­tin­ued op­er­a­tions of £0.3m in the cur­rent pe­riod,” the group said.

Rev­enue de­clined to £48.6m, down from £50.3m as re­stated for the dis­con­tin­ued op­er­a­tions while head­line earn­ings per share (Heps) de­clined to 2.3 pence a share, down from 3.5p. The Heps would have been 2.5p in 2017, ex­clud­ing the fi­nan­cial ser­vices.

Trade­hold shares closed un­changed on the JSE yes­ter­day at R12.

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