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Audited summary consolidated financial statements of Tradehold Group for year to 28 February 2023 and cash dividend
Tradehold Limited
(Registration number: 1970/009054/06)
Incorporated in the Republic of South Africa
JSE Ordinary Share code: TDH ISIN: ZAE000152658
("Tradehold" or the "Group")
Summary consolidated financial statements of the Tradehold Group for the
year to 28 February 2023 and cash dividend declaration
Key information
- Revenue: R1 147 million (28 February 2022: R1 123 million)
- Profit from continuing operations before non-controlling interest:
R516.9 million (28 February 2022: R528.9 million)
- Final dividend of 30 cents per ordinary share declared
(2022: Final dividend 30 cents)
- Reporting currency is South African rand following the sale of
the UK business
On 17 November 2022, Tradehold disposed of all its property assets and
operations in the United Kingdom for a consideration of R2 013 million
(£102.5 million) as part of a far-reaching restructuring of the business.
These assets comprised its total investment in the Moorgarth Property Group.
A loss of R856.7 million, reducing to a loss of R164.4 million after the
release of related foreign currency translation reserves, was realised on
the disposal.
Tradehold utilised the disposal consideration (net of taxes and transaction
costs) to fully redeem its listed 'B' preference shares held by Rand
Merchant Bank whereafter it distributed the balance to shareholders as part
of a special dividend of R4.34 per share.
Tradehold's remaining assets comprise a 74.3% holding in the Collins
Property Group and full ownership of both the Nguni Group (Namibia
portfolio) and the Tradehold Africa Group.
Total assets now amount to R12 220 million (28 February 2022: R17 181
million which included Moorgarth assets of R5 340 million). Earnings per
share from continuing operations was R1.29 (28 February 2022: R1.30) and net
asset value per share was R12.40 (28 February 2022: R19.47), reduced by the
special dividend of R4.34 per share and the loss on disposal of Moorgarth.
Collins group
Operating in South Africa presents significant challenges at present. The
Collins Group's ability to remain profitable under these debilitating
conditions is mainly due to the nature and quality of its 1.5 million square
meter portfolio which comprises mainly industrial buildings and large
distribution centres (82%). Of the rest 13% is invested in convenience
retail properties and 5% in office space. Of the total gross portfolio, 7%
is located in Austria. Since year-end, the company has also acquired a 31.6%
holding in four properties in the Netherlands in a joint venture as part of
its decision to in grow its holdings in Western Europe.
More than 80% of its South African income is derived from JSE listed
companies or well-established national tenants. Given the financial strength
of the majority of these clients Collins was able to collect 98.8% of all
income owed.
Despite the stressed business climate with its operational difficulties,
Collins Group grew net profit before minorities by 9% from R539.7 million to
R588.8 million.
The weighted average lease expiry date (WALE) at five years enabled the
company to restrict vacancies to 3%, marginally up from 2.5% in the previous
year. The average increase on renewals was 3% on 8 of the larger properties
renewed during the year, representing some 46 000 square meters.
In line with its intention to broaden its national foot-print, management
intends growing its presence in the Western Cape to 17% of the total
portfolio, thereby reducing the footprint of KwaZulu-Natal and Gauteng to
42% and 39%, respectively.
In addition, management remains determined to expand its presence in Western
Europe and is committing both human and capital resources to achieve this
objective.
Outlook
The board does not foresee South Africa's economic outlook improving
materially in the short to medium term. The country has to cope with major
problems at many levels, particularly in the absence of decisive action by
government. Most of the country's infrastructure is collapsing while the
supply of basic services such as water and electricity has become
increasingly unstable. This negative business environment will continue to
place enormous pressure on the business sector and the community at large.
Despite these drawbacks, the board remains cautiously optimistic. The past
financial year has seen substantial changes to the business. The company is
expected to emerge from these more strongly focused than before. It is in
the process of acquiring a new, coherent identity and positioning in the
market, changes we believe that will also enhance its attractiveness for
investors.
Name change
The name of the company will shortly be changed to Collins Property Group
Limited.
Ordinary share cash dividend
The board of directors of Tradehold (the "Board") declared a gross cash
dividend of 30 cents per ordinary share on 24 May 2023. The cash used for
this purpose is Tradehold's share of the distributions made by the Collins
group every six months in terms of the agreement with its minority
shareholders. The dividend will reduce Tradehold's stated capital.
In terms of the Income Tax Act ("ITA"), dividends tax ("DT") of 20% will be
withheld in the case of those shareholders who are not exempt from it. They
will therefore receive a net dividend of 24 cents per ordinary share.
Tradehold has 261 346 570 ordinary shares in issue. Its South African income
tax reference number is 9725/126/71/9.
The salient dates for the dividend are as follows:
Declaration date Friday, 26 May 2023
Last date to trade cum dividend Monday, 12 June 2023
Date trading commences ex dividend Tuesday, 13 June 2023
Record date Thursday, 15 June 2023
Date of payment to shareholders Monday, 19 June 2023
Share certificates may not be dematerialised or rematerialised between
Tuesday, 13 June 2023, and Thursday, 15 June 2023, both days included.
Availability of B-BBEE compliance report and certificate
Tradehold shareholders are advised that the Company's annual compliance
report, prepared pursuant to section 13G(2) of the Broad-Based Black
Economic Empowerment Amendment Act No. 46 of 2013, and B-BBEE certificate,
are available at the following link on the Company's website:
http://www.tradehold.co.za/investor-centre/B-BBEE
CH Wiese GC Lang
Chairman Director
26 May 2023
Full announcement
The contents of this announcement is the responsibility of the directors of
Tradehold Limited. It is only a summary of the information contained
in the complete audited summary consolidated financial statements for the
year to 28 February 2023 ("Full Announcement"). Any investment decisions by
investors and shareholders should be based on consideration of the
Full Announcement published on SENS on Friday, 26 May 2023 which is
available at the following link:
https://senspdf.jse.co.za/documents/2023/jse/isse/tdh/YE2023.pdf
and on Tradehold's website at www.tradehold.co.za. Copies of the
Full Announcement are available for inspection and may be requested
at no charge from Tradehold's registered office at Leinster Hall,
7 Weltevreden Street, Gardens 8005, or from that of its sponsor,
Questco Corporate Advisory (Pty) Ltd, Ground Floor, Block C,
Investment Place, 10th Road, Hyde Park, 2196 at no charge, from
Monday to Friday during office hours.
These annual results have been audited by the Company's auditors,
PricewaterhouseCoopers Inc. who expressed an unmodified audit opinion
thereon. That report also includes communication of key audit matters. This
opinion is available, along with the annual financial statements
on the Company's website at www.tradehold.co.za.
Directors and administration
Executive directors: FH Esterhuyse, KA Searle (appointed 27 February 2023),
GC Lang (appointed 27 February 2023), TA Vaughan
(resigned 24 February 2023), KL Nordier (resigned 24 February 2023).
Non-executive directors: CH Wiese (alternate JD Wiese), KR Collins,
PJ Roelofse, RD Fenner (appointed 27 February 2023), B Makhunga
(appointed 27 February 2023), BA Chelius (appointed 27 February 2023),
LL Porter (resigned 24 February 2023), MJ Roberts (resigned 24 February
2023), HRW Troskie (resigned 24 February 2023).
Company secretary: PJ Janse van Rensburg.
Transfer secretary: Computershare Investor Services (Pty) Ltd.
Sponsor: Questco Corporate Advisory (Pty) Ltd.
Date: 26-05-2023 01:49:00
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