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Media release: Sekunjalo posts impressive interim results
Sekunjalo Investments Limited
(Incorporated in the Republic of South Africa)
Registration number 1996/006093/06
Share code: SKJ and ISIN: ZAE000017893
(“Sekunjalo” or “the Group” or “the Company”)
MEDIA RELEASE
22 April 2014
SEKUNJALO POSTS IMPRESSIVE INTERIM RESULTS
Group Revenue Up By 7%
Operating Profits Increased By 18%
Profit Before Taxation Up By 35%
Total Assets Increased by 7%
Tangible net Asset Value Up By 7%
South Africa’s leading empowerment company, Sekunjalo
Investments Limited today reported solid results in bottom line
earnings, cash flow and net asset value for the interim period
ended 28 February 2014.
The Group, as an investment holding company, has set its
objective to increase net asset value (NAV) by improving the
operational performance of its underlying businesses and
investments, and has done so successfully for the period under
review.
The Executive Chairman of Sekunjalo Investments Limited, Dr
Iqbal Survé said he is delighted by the performance of the
listed subsidiary of the Sekunjalo Investment Holding Company.
Dr Survé has indicated that he is particularly pleased that the
fishing and IT subsidiaries, as well as the investments in
Pioneer Foods and British Telecom all continue to perform
strongly, which has strengthened the Group’s financial position.
Dr Survé has mentioned that the performance has to be applauded,
as traditionally Sekunjalo’s results for the first half of the
year are not as good as the second half of the year due to the
seasonal nature of some of the businesses in the Group.
Group revenue has grown by 7% from the prior interim period due
to the strong operational performance of the underlying
businesses. The Group’s gross profit percentage of 32% was
achieved by improved margins and driving efficiencies throughout
the Group’s operations.
Profit before taxation for the period increased significantly to
R32.7million by R8.5million compared to the prior period of
R24.2million, driven mainly by the organic growth of subsidiary
companies and the strategies implemented during the last two
years.
Earnings and headline earnings per share have increased by 13%
and 12% respectively as a result of the operational performance
of the subsidiaries.
The Group’s asset base increased by R61.6million to R959.6
million, from R897.9 million for the comparative period under
review.
Net asset value (NAV) per share grew to 100.23c from 93.79c for
the interim period, while tangible NAV per share grew to 90.17c
from 83.83c for the same period.
Sekunjalo’s CEO, Khalid Abdulla said that this performance was
as a result of improved operational efficiencies, which compares
well with the prior interim period. He is pleased that the
business strategies implemented are showing the expected results
for the six month period under review.
The Sekunjalo Investments strategy of growing NAV by investing
its surplus capital in its underlying businesses is reaping the
benefits as a result of this approach, and the board and the
company are looking forward to a strong performance in the years
ahead.
He said the re-investment in the organic growth of the Group’s
operations are showing the benefits as expected with operating
profits of R38.9million for the period under review
(R32.9million – 2013). Premier Fishing has steadily improved
its performance with the major contribution coming from the
south coast rock lobster and Abalone divisions. The fishing
sector generally performs better in the second half of the year
due to the seasonal nature of the industry.
The Information Technology and Communication operations continue
to perform well above expectation since the successful
implementation of the National Health Laboratory Systems project
which now moves to annuity maintenance mode.
Abdulla said that the healthcare division’s revenue has grown by
29% with the natural chemical range of products in the
healthcare division showing a good improvement in performance.
The performance of the Group’s investments in large
multinational companies, British Telecom Communication Services
South Africa and Pioneer Foods Group have, as indicated, also
contributed to the Group’s solid interim results.
The fishing and ITC divisions have built a strong platform for
further organic growth and the Group is well positioned to
increase its investments further through acquisition.
ENDS
For further comment please contact:
Khalid Abdulla - 083 707 4211
Cherie Hendricks - 021-427 1400 or 083 718 4493
Sponsor: PSG Capital
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