Wrap Text
Net asset value (“NAV”) update for the third quarter ended 31 December 2013 (Q3 FY2014)
Brait SE
(Registered in Malta as a European Company)
(Registration No.SE1)
Share code: BAT ISIN: LU0011857645
Share Code: BATP ISIN: MT0000680208
(“Brait”, “the Company”)
NET ASSET VALUE (“NAV”) UPDATE FOR THE THIRD QUARTER ENDED 31
DECEMBER 2013 (Q3 FY2014)
Shareholders of the Company are advised that:
- NAV per share increased by 4.3% to R30.41 for the quarter
ended 31 December 2013 (30 September 2013: R29.17 per share).
- NAV per share of R30.41 reflects an increase of 23.1% for the
twelve months ended 31 December 2013 (31 December 2012:
R24.70 per share), which translates into a 24.9% CAGR since 1
April’s R16.50 Rights Offer Price.
- Valuation multiples for Brait’s investments remain unchanged.
- Pepkor’s carrying value grew by 6.5% for the quarter,
attributable to continued strong trading and resulting growth
in EBITDA and cash flow generation.
- Premier Group’s core business traded well during the quarter,
generating solid growth in EBITDA and cash flow. The
acquisitions announced in Brait’s interim results
presentation (Star Bakeries and Lil-lets Group) were
completed during November and funded by Brait. They have been
recognised in the Premier Group valuation at their combined
cost of R1.3 billion. R330 million of this funding is a
scheduled loan repayment to be received by Brait in the next
quarter and accordingly is shown in accounts receivable as
opposed to the carrying value for Premier Group. Brait
increased its shareholding in Premier Group from 80.0% to
84.6% through the exercise of existing put and call option
agreements with former Premier Group shareholders. The
combined effect of these items resulted in the carrying value
for Premier Group increasing by 54.4% for the quarter.
- Iceland Foods’ cash generation remains on plan. However, the
difficult trading conditions in the UK market have led to a
downward revision of the forecast FY2014 EBITDA which has
negatively impacted the valuation of Iceland Foods in GBP
terms. The weakening of the Rand/GBP exchange rate has
largely mitigated this, resulting in the carrying value in
Rand terms declining by 2.4% for the quarter.
- Further to the announcement in its FY2014 interim results
presentation, Brait has acquired 37% of Southern View Finance
(“SVF”). SVF is an international financial services business
which specializes in the provision of unsecured loans. SVF
has acquired the right to use the Pepkor footprint to
originate unsecured loans for its own account. The SVF
carrying value shown represents the cost of Brait’s
investment to date. Further information on this investment
will be reported in Brait’s March 2014 results.
- The 6.2% reduction in Other investments is attributable to
proceeds received from realisations.
- The increase in Brait’s borrowings during the quarter is due
to having funded the acquisitions made by Premier Group and
the investment in SVF. The Company remains adequately
capitalised with sufficient available cash and facilities for
potential new investments. Alternative sources of funding to
enhance flexibility and efficiency continue to be explored.
- Operating costs for the Company remain in line with
previously communicated performance targets.
NAV Detailed Analysis:
31-Dec-13 30-Sept-13 31-Dec-12
R'm R'm R’m
Investments 16,639 14,806 12,204
Pepkor 10,816 10,154 8,471
Premier Group 2,910 1,885 1,313
Iceland Foods 1,764 1,808 1,380
Southern View Finance 249 - -
Other investments 900 959 1,040
Loan receivable 1,492 1,460 1,370
Cash and cash equivalents 424 583 512
Property and equipment 9 9 10
Accounts receivable 338 106 10
Total Assets 18,902 16,964 14,106
Borrowings (1,369) (83) (59)
Deferred tax liability (25) (25) (34)
Accounts payable (78) (54) (63)
Total liabilities (1,472) (162) (156)
Preference share equity (1,964) (1,964) (1,470)
Net Asset Value 15,466 14,838 12,480
Number of issued shares ('mil)
excluding treasury shares 508.5 508.6 505.2
Net asset value per share
(ZAR) 30.41 29.17 24.70
The financial information on which this announcement is based
has not been reviewed and reported on by the Company`s external
auditors.
For and on behalf of the Company’s Board of Directors
Phillip Jabulani Moleketi
Non-Executive Chairman
22 January 2014
The Company is primarily listed on the Euro MTF market of the
Luxembourg Stock Exchange and secondarily listed on the
Johannesburg Stock Exchange.
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
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