Wrap Text
Net asset value update for the first quarter ended 30 June 2015 (Q1 FY2016)
Brait SE
(Registered in Malta as a European Company)
(Registration No.SE1)
Share code: BAT ISIN: LU0011857645
Share Code: BATP ISIN: MT0000680208
("Brait" or "the Company")
NET ASSET VALUE ("NAV") UPDATE FOR THE FIRST QUARTER ENDED 30 JUNE 2015 (Q1 FY2016)
Shareholders of the Company are advised that:
- NAV per share increased by 4.2% to R80.34 for the quarter
ended 30 June 2015 (31 March 2015: R77.12 per share).
- NAV per share of R80.34 reflects an increase of 141.8% for
the twelve months ended 30 June 2015 (30 June 2014: R33.23
per share) and a three-year CAGR to 30 June 2015 of 54.8%.
- Inclusive of the ordinary share dividends paid to date, the
three-year CAGR to 30 June 2015 is 55.3%.
- Brait's c.90% investment in New Look is valued at the
acquisition cost of GBP783 million paid on 26 June 2015,
translated at the 30 June 2015 closing GBP/ZAR exchange rate
of R19.12. Brait utilized its ZAR gearing facilities to
acquire the GBP783 million at an average exchange rate of
R18.39. Based on New Look's 31 March 2015 audited EBITDA of
GBP212.4 million, Brait's historic acquisition multiple paid
is 9.0x.
- Premier's carrying value increased by 6.6% for the quarter as
a result of strong EBITDA growth, cash flow generation and an
increase in valuation multiple. The Premier valuation
multiple follows the peer group's three year trailing average
multiple, which has increased for the quarter from 12.3x to
12.6x.
- Iceland Foods' carrying value increased by 9.1% as a result
of cash generation and the positive effect of the GBP/ZAR
exchange rate weakening from R17.97 at 31 March 2015 to
R19.12 at 30 June 2015. The EBITDA valuation multiple remains
unchanged at 7.5x.
- The 1.3% increase for the quarter in the carrying value of
Brait's 200 million Steinhoff shareholding is attributable to
the 30 June 2015 closing share price of R76.99 compared to
that at 31 March 2015 of R76.03.
- The movement on Other Investments is due to the realisation
of Chamber Lane Properties, which is the reason for the
increase in accounts receivable. Strong operational
performance by DGB resulted in an increase in its carrying
value.
- The increase in Brait's cash during the quarter is largely
attributable to the weakening of the GBP/ZAR exchange rate
over the quarter, applied to the GBP718 million held at 30
June 2015. Following the confirmation of approval from the
competition authorities, Brait paid GBP691 million for its
acquisition of c.80% of Virgin Active on 16 July 2015.
- Borrowings have increased to facilitate the funding of
Brait's recent acquisitions in the UK.
- Brait continues to explore alternative sources of funding to
enhance flexibility and efficiency.
NAV Analysis:
30-Jun-15 31-Mar-15 30-Jun-14
R'm R'm R'm
Investments 42,920 27,144 17,709
New Look 14,963 - -
Pepkor - - 11,386
Premier 8,788 8,241 3,196
Iceland Foods 1,374 1,259 1,562
Steinhoff 15,398 15,206 -
Other investments 2,397 2,438 1,565
Loan receivable 588 574 535
Cash and cash equivalents 14,297 13,689 467
Accounts receivable 152 12 354
Total Assets 57,957 41,419 19,065
Borrowings (14,916) - (168)
Accounts payable and provisions (64) (86) (36)
Total liabilities (14,980) (86) (203)
Preference share equity (1,964) (1,964) (1,964)
Net Asset Value 41,013 39,369 16,897
Number of issued shares ('mil)
excluding treasury shares 510.5 510.5 508.5
Net asset value per share (ZAR) 80.34 77.12 33.23
The financial information on which this announcement is based has
not been reviewed and reported on by the Company's external
auditors.
Malta
5 August 2015
Brait's primary listing is on the Euro MTF market of the
Luxembourg Stock Exchange and its secondary listing is on the
Johannesburg Stock Exchange.
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 05/08/2015 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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