Sabvest Capital (Sabcap) has released results for the year ended December 2021. The investment holding company has interests in ten unlisted and three listed investments. The net asset value (NAV) per share increased by 25.9% to R93.71. Yesterday's closing price reflects a discount to NAV of around 33%. A dividend per share of 75 cents has been declared, three times higher than the 25 cents per share dividend in the prior year. With a 15-year compound annual growth rate in NAV per share of 18.6% (if dividends were reinvested), Sabcap has one of the best track records on the JSE.
Bytes Technology Group rallied by a substantial 16.6% yesterday after releasing a full year trading update. Bytes is a software, security and cloud services specialist in the UK. Gross invoiced income increased by over 26% and adjusted operating profit grew by mor e than 23%. Cash conversion was extremely strong and the business had over GBP68 million in cash on the balance sheet at year-end (February 2022). Full results will be released towards the end of May.
Tongaat shareholders have to be patient regarding clarity from the Takeover Special Committee on whether Magister Investments should be required to make a mandatory offer to Tongaat shareholders as part of the proposed rights offer. The determination was expected on 11th March but has been delayed to an unknown date due to a further submission by the applicants.
Texton Property Fund has released a trading statement covering the six months ended December 2021. Distributable income is expected to drop from R98 million in the comparable period to between R40 million and R45 million in this period. Between 75% and 85% of the income will be paid out as a dividend, so the guided dividend range is between 8.80 cents and 10.55 cen ts per share.
Datatec has released a trading update for the year ended February 2022. This international technology company has benefitted from demand for networking, security and cloud infrastructure. The mix of software and services has increased. Group revenue for FY22 of around USD4.65 billion is a 13% increase. The two major divisions (Logicalis and Westcon International) both performed well, with revenue increases of 14% and 12% respectively. The order backlog has increased vs. the prior period as the supply chain constraints in tech hardware are far from over. Results are expected to be released towards the end of May.
EPE Capital Partners is listed in Mauritius and invests in funds or investments managed by Ethos Private Equity. The company has released results for the six months to December 2021. The net asset value (NAV) per share increased by 24% to R8.26 (if Brait is included at its share price, or R10.08 if Brait is included at its own NAV), largely driven by the unlisted portfolio that returned 13% over the period. Net capital of R310 million was invested over the period, with the major recipients being Crossfin Technology Holdings and Brait from the issuance of its exchangeable bonds. Brait contributes around 20% of the overall portfolio's valuation.
Libstar released results for the year ended December 2021 that were met with a 3.5% drop in the closing share price. Revenue growth of 7.5% was whittled away by costs and lower-margin business units, so growth in normalised EBITDA was subdued at 2.4%. Cash conversion of earnings was higher than in the prior year and this gave the balance sheet a boost. I see that Libstar has acquired 60% of Umatie, a baby food manufacturer that played a large role in helping Baby Ghost grow into Toddler Ghost. Libstar will be focusing on higher-margin business units going forward, which seems sensible. This is evidenced b y 18.8% growth in HEPS from continuing operations vs. 8.1% growth in HEPS from all operations.
In the latest episode of
Magic Markets, Petri Redelinghuys of Herenya Capital Advisors joined us to discuss his current portfolio positioning and the way in which the community of traders at Herenya joins forces in tough times to share ideas and support each other.
Be sure to listen to the show here.
That's it for today - have a good one!
The Finance Ghost
