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TREMATON CAPITAL INVESTMENTS LIMITED - Unaudited interim results for the 6 months ended 28 February 2017

Release Date: 20/04/2017 07:30
Code(s): TMT     PDF:  
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Unaudited interim results for the 6 months ended 28 February 2017

TREMATON CAPITAL INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1997/008691/06)
JSE code: TMT
ISIN: ZAE000013991
("Trematon" or "the company")


UNAUDITED INTERIM RESULTS
for the six months ended 28 February 2017



STATEMENT OF FINANCIAL POSITION
                                                Unaudited     Unaudited       Audited
                                                       At            At            At
                                              28 February   29 February     31 August
                                                     2017          2016          2016
                                       Note         R'000         R'000         R'000
ASSETS                                        
Non-current assets                              1 004 943       953 650     1 024 092 
Property, plant and equipment                      65 405        19 458        37 359 
Investment properties                             867 190       777 041       822 225 
Investments in joint ventures                      44 264        30 152        37 617 
Investments in associate entities                   2 287       102 530        99 043 
Loans receivable                          4        20 783        20 473        22 903 
Deferred tax asset                                  5 014         3 996         4 945 
Current assets                                    354 834       150 828       166 572 
Loans receivable                          4        13 300         6 450        10 377 
Trade and other receivables                         9 678        15 525         8 515 
Investments                                        10 994        18 428        13 905 
Inventories                                       117 171        88 442       101 213 
Current tax assets                                      2            47             2 
Cash and cash equivalents                         203 689        21 936        32 560 
Total assets                                    1 359 777     1 104 478     1 190 664 
                                        
EQUITY AND LIABILITIES                                        
Equity                                            699 215       563 580       601 222 
Share capital and share premium                   314 088       321 237       322 707 
Treasury shares                                    (2 559)       (2 559)       (2 559)
Fair value reserve                                 13 156        11 063        12 388 
Share-based payments reserve                       10 362         7 976         8 999 
Accumulated profit                                315 708       184 414       214 655 
Total equity attributable to equity 
  holders of the parent                           650 755       522 131       556 190 
Non-controlling interest                           48 460        41 449        45 032 
Non-current liabilities                           569 630       496 682       492 753 
Loans payable                                     520 133       455 385       444 179 
Deferred tax liability                             49 497        41 297        48 574 
Current liabilities                                90 932        44 216        96 689 
Loans payable                                      51 635        14 261        61 145 
Current tax payable                                   372            11         1 916 
Trade and other payables                           38 925        29 944        33 628 
Total equity and liabilities                    1 359 777     1 104 478     1 190 664 
                                        
Net asset value per share (cents)                     299           241           255


STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
                                                Unaudited     Unaudited       Audited
                                               Six months    Six months          Year
                                                    ended         ended         ended
                                              28 February   29 February     31 August
                                                     2017          2016          2016
                                                    R'000         R'000         R'000
Revenue                                            79 840        63 381       132 644
Realised (loss)/profit on held-for-trading 
  investments                                      (4 906)        1 797         3 331
Realised profit on sale of non-current assets         487            60            60
Realised profit on sale of associate               91 795             -             -
Total realised profit                              87 376         1 857         3 391
Fair value adjustment on held-for-trading 
  investments                                       6 050        (5 458)       (8 690)
Fair value adjustment on investment properties      1 923        41 990        68 330
Reversal of impairment/(impairment) of loan         2 923        (2 181)        1 462
Total profit from fair value adjustments           10 896        34 351        61 102
Employee benefits                                 (17 119)      (12 305)      (23 476)
Cost of property and land sold                     (2 457)       (7 090)      (10 062)
Other operating expenses                          (33 920)      (24 221)      (52 854)
Operating profit                                  124 616        55 973       110 745
Finance costs                                     (27 351)      (21 489)      (47 580)
Profit from equity accounted investments 
  (net of tax) (note 4)                             8 847         7 957        20 825
Profit before income tax                          106 112        42 441        83 990
Income tax                                         (1 631)      (14 671)      (22 336)
Profit for the period/year                        104 481        27 770        61 654
Other comprehensive income                                        
Items that will not subsequently be 
  reclassified to profit/(loss):                                        
Fair value gain on revaluation of property, 
  plant and equipment                                 989           409         1 942
Tax effects on fair value adjustments                (221)          (92)         (876)
Change in tax rate effects on revaluations              -          (576)            -
Other comprehensive income for the period/year        768          (259)        1 066
Total comprehensive income for the period/year    105 249        27 511        62 720
Profit attributable to:                                        
Equity holders of the parent                      101 053        19 202        49 504
Non-controlling interest                            3 428         8 568        12 150
                                                  104 481        27 770        61 654
Total comprehensive income attributable to:                                        
Equity holders of the parent                      101 821        18 943        50 570
Non-controlling interest                            3 428         8 568        12 150
                                                  105 249        27 511        62 720
                                        
Earnings per share                                        
Number of shares issued (thousands)               217 771       216 754       217 714
Weighted average number of shares (thousands)     217 743       216 581       216 964
Diluted weighted average number of shares 
  (thousands)                                     235 592       234 753       234 753
Earnings per share (cents)                           46.4           8.9          22.8 
Diluted earnings per share (cents)                   42.9           8.2          21.1


STATEMENT OF CHANGES IN EQUITY
                                                                      Total      Fair
                                        Share     Share  Treasury     share     value
                                      capital   premium    shares   capital   reserve
                                        R'000     R'000     R'000     R'000     R'000
Balance at 1 September 2015             2 184   326 892    (2 559)  326 517    11 322 
Total comprehensive income for 
  the period                                -         -         -         -      (259)
Profit for the period                       -         -         -         -         - 
Fair value gain on property, plant 
  and equipment                             -         -         -         -       409 
Tax effects on revaluations                 -         -         -         -       (92)
Change in tax rate effects on 
  revaluations                              -         -         -         -      (576)
Share-based payment                         -         -         -         -         - 
Settlement of share-based payment           -         -         -         -         - 
Ordinary shares issued                      1       281         -       282         - 
Capital distribution                        -    (8 121)        -    (8 121)        - 
Balance at 29 February 2016             2 185   319 052    (2 559)  318 678     11 063 
                                                  
Balance at 1 March 2016                 2 185   319 052    (2 559)  318 678    11 063 
Total comprehensive income for 
  the period                                -         -         -         -     1 325 
Profit for the period                       -         -         -         -         - 
Fair value gain on property, plant 
  and equipment                             -         -         -         -     1 533 
Tax effects on revaluations                 -         -         -         -      (208)
Settlement of share-based payment           -         -         -         -         - 
Ordinary shares issued                     10     1 526         -     1 536         - 
Capital distribution                        -       (67)        -       (67)        - 
Balance at 31 August 2016               2 195   320 511    (2 559)  320 147    12 388 
                                                  
Balance at 1 September 2016             2 195   320 511    (2 559)  320 147    12 388 
Total comprehensive income for 
  the period                                -         -         -         -       768 
Profit for the period                       -         -         -         -         - 
Fair value gain on property, plant 
  and equipment                             -         -         -         -       989 
Tax effects on revaluations                 -         -         -         -      (221)
Share-based payment                         -         -         -         -         - 
Ordinary shares issued                      -        91         -        91         - 
Capital distribution                        -    (8 709)        -    (8 709)        - 
Balance at 28 February 2017             2 195   311 893    (2 559)  311 529    13 156


                                       Share-  
                                        based   Accumu-             Non-con 
                                      payment     lated            trolling     Total
                                      reserve    profit     Total  interest    equity
                                        R'000     R'000     R'000     R'000     R'000
Balance at 1 September 2015             6 657   165 151   509 647    32 881   542 528 
Total comprehensive income for 
  the period                                -    19 202    18 943     8 568    27 511 
Profit for the period                       -    19 202    19 202     8 568    27 770 
Fair value gain on property, plant 
  and equipment                             -         -       409         -       409 
Tax effects on revaluations                 -         -       (92)        -       (92)
Change in tax rate effects on 
  revaluations                              -         -      (576)        -      (576)
Share-based payment                     1 380         -     1 380         -     1 380 
Settlement of share-based payment         (61)       61         -         -         - 
Ordinary shares issued                      -         -       282         -       282 
Capital distribution                        -         -    (8 121)        -    (8 121)
Balance at 29 February 2016             7 976   184 414   522 131    41 449   563 580 
                                                  
Balance at 1 March 2016                 7 976   184 414   522 131    41 449   563 580 
Total comprehensive income for 
  the period                                -    30 302    31 627     3 583    35 210 
Profit for the period                       -    30 302    30 302     3 583    33 885 
Fair value gain on property, plant 
  and equipment                             -         -     1 533         -     1 533 
Tax effects on revaluations                 -         -      (208)        -      (208)
Settlement of share-based payment       1 357       (61)    1 296         -     1 296 
Ordinary shares issued                   (333)        -     1 203         -     1 203 
Capital distribution                        -         -       (67)        -       (67)
Balance at 31 August 2016               9 000   214 655   556 190    45 032   601 222 
                                                  
Balance at 1 September 2016             9 000   214 655   556 190    45 032   601 222 
Total comprehensive income for 
  the period                                -   101 053   101 821     3 428   105 249 
Profit for the period                       -   101 053   101 053     3 428   104 481 
Fair value gain on property, plant 
  and equipment                             -         -       989         -       989 
Tax effects on revaluations                 -         -      (221)        -      (221)
Share-based payment                     1 362         -     1 362         -     1 362 
Ordinary shares issued                      -         -        91         -        91 
Capital distribution                        -         -    (8 709)        -    (8 709)
Balance at 28 February 2017            10 362   315 708   650 755    48 460   699 215


STATEMENT OF CASH FLOW                                        
                                                Unaudited     Unaudited       Audited
                                               Six months    Six months          Year
                                                    ended         ended         ended
                                              28 February   29 February     31 August
                                                     2017          2016          2016
                                                    R'000         R'000         R'000
Cash flows from operating activities                                          
Cash generated from operations                     18 749         8 568        26 930
Finance income                                      4 616         1 892         2 041
Dividends received                                      -           360           435
Dividends received from associate                       -             -         8 891
Finance costs                                     (27 351)      (21 489)      (47 580)
Tax paid                                           (2 677)         (137)          (36)
Net cash from operating activities                 (6 663)      (10 806)       (9 319)
                                        
Cash flows from investing activities                                           
Acquisition of and addition to property, 
plant and equipment                               (29 157)      (17 603)      (19 948)
Acquisition of and addition to investment 
  properties                                      (43 042)       (6 528)      (32 439)
Proceeds on disposal of non-current assets            496           212           213
Proceeds on disposal of associate                 190 751             -             -
Loans receivable advanced                               -          (110)         (537)
Loan advanced to joint ventures and associates     (4 694)       (1 062)         (648)
Loans repaid by joint ventures and associates       1 661         1 950             -
Acquisition of held-for-trading and 
  available-for-sale investments                     (103)       (9 378)      (12 638)
Proceeds from disposal of investments               4 054        27 278        32 747
Net cash from investing activities                119 966        (5 241)      (33 250)
                                        
Cash flows from financing activities                                           
Ordinary shares issued                                 91           282         1 818
Capital distribution                               (8 709)       (8 121)       (8 188)
Decrease in borrowings                             (9 510)      (10 232)      (11 467)
Increase in borrowings                             75 954           665        37 577
Net cash from financing activities                 57 826       (17 406)       19 740
                                        
Net increase/(decrease) in cash and cash 
  equivalents                                     171 129       (33 453)      (22 829)
Cash and cash equivalents at the beginning 
  of the period/year                               32 560        55 389        55 389
Total cash and cash equivalents at the end 
  of the period/year                              203 689        21 936        32 560


NOTES
1.  Presentation of consolidated results
    Trematon Capital Investments Limited (the "company") is a company domiciled in 
    South Africa. The unaudited interim consolidated results of the company for the 
    period ended 28 February 2017 comprise the company and its subsidiaries (together 
    referred to as the "group") and the group's interest in joint ventures and associates.

    The unaudited interim consolidated results have been prepared in accordance with and 
    containing information required by IAS 34 - Interim Financial Reporting, the 
    SAICA Financial Reporting Guides as issued by the Accounting Practices Committee 
    and in the manner required by the Companies Act and the JSE Limited Listings 
    Requirements. The unaudited interim consolidated results have been prepared using 
    accounting policies and methods of computation that are in terms of IFRS and which 
    are consistent with those of the previous annual financial statements. The unaudited 
    interim consolidated results have not been audited or reviewed by the company's auditors.

    The unaudited interim consolidated results have been prepared on the going concern 
    basis using a combination of the historical cost and fair value bases of accounting.

    Standards or interpretations that have been issued and are effective, have been 
    adopted by the group but are not applicable to its activities.

    The unaudited interim consolidated results are stated in Rands, which is the group's 
    functional and presentation currency.

    In preparing the unaudited interim consolidated results management is required to 
    make estimates and assumptions that affect the amounts represented in the unaudited 
    interim consolidated results and related disclosures. Use of available information 
    and the application of judgement is inherent in the formation of estimates. Actual 
    results in the future could differ from these estimates which may be material to 
    the unaudited interim consolidated results.

    Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to 
    accounting estimates are recognised in the period in which the estimate is revised 
    and in any future periods affected.

2.  Headline earnings per share reconciliation
                                   Unaudited          Unaudited            Audited
                                  Six months         Six months              Year
                                    ended               ended               ended
                                 28 February         29 February          31 August
                                2017     2017       2016     2016       2016     2016
                               Gross      Net      Gross      Net      Gross      Net
                               R'000    R'000      R'000    R'000      R'000    R'000
    Profit attributable to 
      equity holders of 
      the parent                      101 053              19 202              49 504
    Fair value adjustment on
      investment properties   (1 923)  (1 958)   (41 990) (25 283)   (68 330) (37 285)
    Fair value adjustments 
      within equity accounted 
      profits                 (6 441)  (3 332)    (7 380)  (3 818)   (14 707)  (8 522)
    Change in tax rate on 
      previous fair value 
      adjustments on investment 
      property                     -        -               3 898          -        -
    Change in tax rate on 
      previous fair value 
      adjustments within 
      equity accounted profits     -        -          -    1 008          -        -
    Realised profit on sale 
      of associate           (91 795) (91 795)         -        -          -        -
    Realised profit on sale 
      of property, plant 
      and equipment                -        -        (60)     (43)       (60)     (47)
    Headline earnings                   3 968              (5 036)              3 650
                                                                      
    Headline earnings per 
      share (cents)                       1.8                (2.3)                1.7
    Diluted headline earnings 
      per share (cents)                   1.7                (2.3)                1.6

3.  Segmental information
                                            Property
                                             invest-     Educa-   Unallo-
                                   Gaming      ments       tion     cated       Total
                                    R'000      R'000      R'000     R'000       R'000
    Unaudited six months ended 
      28 February 2017                                                  
    Revenue                           406     70 904      8 530         -      79 840
    Profit before tax              94 116     17 060     (1 701)   (3 363)    106 112
    Total assets                        -  1 296 114     47 220    16 443   1 359 777
    Total liabilities                   -    657 797      2 765         -     660 562
                                                            
    Unaudited six months ended 
      29 February 2016                                                  
    Revenue                           954     60 138      2 289         -      63 381
    Profit before tax               6 796     39 399       (779)   (2 975)     42 441
    Total assets                  105 505    968 027     19 542    11 404   1 104 478
    Total liabilities                   -    540 162        736         -     540 898
                                                            
    Audited year ended 
      31 August 2016                                                  
    Revenue                         1 581    123 697      7 367         -     132 645
    Profit before tax              22 290     60 061        245     1 394      83 990
    Total assets                   97 040  1 042 637     23 971    27 016   1 190 664
    Total liabilities                   -    588 809        632         -     589 441

4.  Loans receivable
    Loans receivable include loans due from related parties including joint ventures, 
    associates and other investments which are not consolidated in the group.

    Profit from these equity accounted joint ventures and associates amounted to R6.6 million 
    and R2.2 million respectively (2016: R2 million and R6 million respectively).

5.  Commitments
    Trematon via its subsidiary, Aria Property Group, entered into agreement to purchase 
    R614.1 million worth of properties from Redefine Properties Limited. The properties 
    are in the process of being transferred and will be included in the accounts at 
    year-end, being 31 August 2017.

    Trematon via its subsidiary, Club Mykonos Langebaan, has entered into an agreement 
    to dispose of two immovable properties, collectively known as Hobie Beach, Langebaan 
    for an aggregate consideration of R30 million. The transaction is subject to shareholder 
    approval and a circular has been prepared and distributed to shareholders in terms 
    of the JSE Listings Requirements.


DIRECTORS' REVIEW
Trematon, which celebrates its 20th year as a JSE-listed company this year, is an 
investment holding company that invests in assets and operating businesses which 
management believes will have the potential to generate an internal rate of return of 
20% or greater over time. The company's operations are not limited to a specific 
commercial area but there is currently a strong focus on property-related investments 
and a strong geographic focus on the Western Cape.

The six-month period to February 2017 represents a period of transformational transactions 
for the group. The group's main strategic drivers during this interim period were as follows:

-  Since 2008 Club Mykonos has been a major component of the group's NAV and has 
   delivered good growth but the value extraction process for the existing assets has 
   run its course and the focus will now shift to development of the remaining land. 
   We remain confident and enthusiastic about the prospects for the West Coast region 
   but recognised that the group had a high level of exposure (more than 50% of NAV) 
   to a relatively small part of the Western Cape and wished to diversify our 
   investments to obtain a broader exposure to the Western Cape in general. After the sale
   of the Mykonos Club, Club Mykonos Langebaan will make up 22% of NAV.

-  The focus of the Aria Property Group over the past few years has been to improve 
   the quality of the portfolio via the purchase of institutional grade assets preferably 
   (although not exclusively) located in the Western Cape.

-  Generation Education started operations in January 2016 and the model, as expected, 
   has proven to be viable. The group is committed to growing this business as fast as 
   possible while constantly refining and improving the education model to bring a fresh, 
   innovative and contemporary approach to education that delivers the type of learning 
   that people need to develop knowledge and life skills for the 21st-century economy.

-  The original focus of the Resi Group was on the purchase of mid-market rental units 
   which had become underpriced due to the hangover of the global 2008 financial crisis. 
   This focus was successful, however the pipeline of suitable assets available has 
   slowed down dramatically and it has been difficult to build scale in the Western Cape. 
   The focus has therefore shifted to new-build developments or redevelopments, usually in 
   conjunction with a joint venture partner with complementary skills. 

The above strategic initiatives resulted in material transactions which have the potential 
to dramatically reshape the group's NAV and growth trajectory over the next few years. 

COMMENTARY ON FINANCIAL RESULTS
Gross assets increased to R1.36 billion from R1.19 billion at year-end. Shareholders' 
attention is drawn to note 5 in terms of which further property acquisitions amounting 
to R614.1 million had not yet been transferred at the reporting date. 

Cash reserves increased to R203.7 million compared to R32.6 million at year-end due 
mainly to cash received from the sale of the group's 30% interest in the Mykonos Casino.

Net asset value and intrinsic net asset value
Net asset value per share increased to 299 cents from 255 cents at year-end due mainly 
to the sale of the shares in the Mykonos Casino. The casino investment was equity 
accounted in terms of IFRS and was therefore not carried at its full market value.

Intrinsic net asset value per share declined to 361 cents from 368 cents at year-end. 
The decline was a result of adjustments to the market valuations of some property assets, 
unrecoverable funding expenses on certain properties earmarked for redevelopment as 
well as realised share trading losses. Intrinsic net asset value represents, in our 
opinion, a more accurate estimate of the underlying realisable market value of the 
group's assets.

Net profit after tax amounted to R104.5 million (2016: R27.8 million) mainly as a result 
of the sale of the shares in the Mykonos Casino.

Earnings per share increased to 46.4 cents (2016: 8.9 cents) and headline earnings 
per share increased to 1.8 cents (2016: loss of 2.3 cents) 

REVIEW OF MAJOR INVESTMENTS
Club Mykonos Langebaan ("CML")
CML provides annuity income from the rental of commercial properties to restaurant 
operators, boat and general storage facilities, the marina and other resort commercial 
activities. The group does not have a major investment in short-term holiday letting 
properties, the majority of which are owned by individuals and timeshare operations. 
The other main component of earnings is profits from development of holiday and 
residential units or rental properties.

The resort has benefited from the good economic growth in the Langebaan region and the 
investment in roads, shopping centres and other infrastructure which has taken place.

Marina Village, which consists of 25 waterfront luxury units, is the newest and most 
upmarket development on the resort. The project has taken longer than anticipated to 
complete due to unexpected ground rock conditions in the early phases of the project 
but all the units are sold and will be handed over in April 2017. In light of the proven 
demand for plots and holiday units on the resort future developments are currently in 
various stages of planning. There is sufficient well-located, zoned resort development 
land on the resort for several years of development.

During the period, the group sold its 30% interest in the Mykonos Casino for 
R190 million to Tsogo Sun Holdings Limited. Subsequent to that, the group sold two erven 
known as "Hobie Beach" to Tsogo Sun Holdings Limited for R30 million. In terms of the 
aggregation rules of the JSE Listings Requirements, the "Hobie Beach" disposal 
constitutes a Category 1 transaction and is therefore conditional upon the approval 
of shareholders. A circular incorporating a notice convening the general meeting to be 
held on Thursday, 11 May 2017 and setting out information regarding the disposal has 
been sent to shareholders.

The resort brand has continued to improve and it remains a highly desirable holiday 
and residential location. Club Mykonos resort was once again recognised by its industry 
peers at the RCI Osca awards as one of the top five large resorts in South Africa and 
the resort general manager, Jon Kilroe-Smith, was recognised as the best resort 
manager of the year for the second time.

Aria Property Group ("Aria")
Aria continued to pursue its strategy of acquiring, adding value and managing its 
predominantly Western Cape-focused commercial property portfolio. Aria is now established 
as a major regional buyer and owner of institutional grade commercial properties.

The R614.1 million portfolio of commercial, retail and industrial properties acquired 
from the Redefine Group will be transferred during the second half of the financial year 
and, in anticipation of this, Aria has increased its staffing headcount in order to ensure 
that value can be extracted from the purchase. Aria also embarked on certain smaller 
demand-driven redevelopments in line with our strategy of enhancing property values 
through focused tenant-driven improvement.

The existing portfolio has material potential for value improvement so there is no urgent 
need to grow the portfolio immediately but selective opportunistic acquisitions will 
still be pursued if they meet our criteria.

Generation Education 
Generation Education combines Montessori pedagogy in the early childhood development 
with an established, world-class international high school curriculum affiliated to 
Cambridge University. The innovative use of technology and forward-thinking educational 
philosophy creates functional learners with the ability to grow and thrive in the 
21st century.

Generation Education is recognised as an innovator in education and has grown its 
brand significantly in the Western Cape. 

The first school site in Sunningdale (age 18 months to school exit) has far exceeded 
expectations and is oversubscribed. The current site is limited only by the size of 
the property. Phase two will be completed this year and the capacity of the school 
will increase from 250 students to 480 students on completion.

The second operational site in Hermanus was acquired and converted to a Generation 
Education school in January 2017 with phase one of the expansion of the school 
currently under way. Upon completion the school will have capacity for 255 learners, 
with a possible further expansion to 500 learners.

Two further sites have been purchased: one is already an operational school although 
it does not yet fall under the Generation Education umbrella and the second site is 
subject to a rezoning application process which is under way. Further sites are in 
various stages of investigation and negotiation.

Education is a key area of activity for the group and gives it access to an industry 
sector with good inherent organic growth prospects. Generation Education offers a 
compelling product which fills a desperate need in South Africa. 

The group is committed to growing Generation Education as fast as possible while ensuring 
that teacher quality and service to students is maintained and continuously improved. 

Resi Investment Group ("Resi")
Resi has a stable portfolio of more than 600 desirable rental properties in the 
Western Cape: some are 100% held by Resi and others are held in 50:50 joint ventures 
with local partners. The bulk of the developed assets are held for rental and individual 
units are traded if the market provides an opportunity to exit at a full price.

The joint venture at Sanddrift (Quest Corsair apartments) is complete, fully let and 
operating in line with expectations. Further sites are actively being sought but 
suitable land in the Western Cape is difficult to come by in the correct price bracket.

Further acquisitions have been made in the Woodstock Hub joint venture and a sizeable 
development pipeline has been secured.

SHAREHOLDER COMMUNICATION
The group commenced with an enhanced shareholder communication initiative in the last 
quarter of 2016. The purpose of this process is to keep current shareholders 
appropriately informed and to raise the group's profile amongst the investment 
community so that the market price reflects the latest developments, and that trading 
in the share is made easier for those shareholders who may wish to buy or sell. 
This has resulted in a noticeable increase in share trading volumes over the past 
six months. The group will be holding its first formal results presentation on 
20 April 2017 which will be webcast live at 10:00 (SAST) and can be accessed via 
http://www.corpcam.com/Trematon20042017.


INTRINSIC VALUE REPORT
The intrinsic net asset value report below illustrates the pro forma intrinsic net 
asset value of all investment categories of the group for the six months ended 
28 February 2017. The preparation of the pro forma intrinsic net asset value is the 
responsibility of the directors of Trematon. The pro forma intrinsic net asset value 
has been prepared for illustrative purposes only to assist investors in analysing 
future prospects of the issuer and, due to the nature thereof, may not give a fair 
reflection of Trematon's financial performance and position.

The pro forma financial information has been compiled by using a combination of listed 
market values, external professional valuations, or directors' valuations, where 
applicable. The intrinsic net asset value report has not been reviewed or reported 
on by Trematon's auditors.

                               February 2017       February 2016         August 2016
                           Intrinsic     Book  Intrinsic     Book  Intrinsic     Book
                               value    value      value    value      value    value
                               R'000    R'000      R'000    R'000      R'000    R'000 

Club Mykonos Langebaan       176 283   84 568    418 599  183 747    401 923  181 986 
Aria Property Group          121 335  110 411     91 452   91 452    105 371  102 848 
Resi Investment Group        187 928  170 609    175 965  143 840    183 651  165 844
Generation Education          54 993   45 893     18 071   18 071     23 347   23 347 
Other                         41 039   35 585     70 447   63 085     53 582   49 605 
Cash                         203 689  203 689     21 936   21 936     32 560   32 560 
Totals                       785 267  650 755    796 470  522 131    800 434  556 190 
                                                            
Number of shares in issue    217 771  217 771    216 754  216 754    217 714  217 714
NAV per share (cents)            361      299        367      241        368      255


Domicile and registered office: 3rd Floor, Aria North Wharf, 42 Hans Strijdom Avenue, 
Foreshore, Cape Town, 8001
PO Box 7677, Roggebaai, 8012, South Africa
Transfer secretaries: Link Market Services South Africa (Pty) Limited
19 Ameshoff Street, Braamfontein, 2001
Directors: M Kaplan (Chairman)*#, AJ Shapiro (Chief Executive Officer), AL Winkler
(Chief Financial Officer), JP Fisher*#, A Groll, AM Louw*#, R Stumpf*
* Non-executive # Independent
Secretary: SA Litten
Sponsor: Sasfin Capital, a division of Sasfin Bank Limited
Auditor: Mazars
Published date: 20 April 2017
Prepared by: The group interim financial results have been prepared under the supervision
of the chief financial officer, Mr AL Winkler CA (SA).
Contact details: Tel: 021 421 5550
Website: www.trematon.co.za



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