Wrap Text
Press release - Interim results announcement
LONG4LIFE LIMITED
(previously Long4Life Proprietary Limited)
(Incorporated in South Africa)
(Registration Number: 2016/216015/06)
Share code:L4L
ISIN:ZAE000243119
("Long4Life" or "the Company")
MEDIA RELEASE
LONG4LIFE – INTERIM RESULTS ANNOUNCEMENT
HIGHLIGHTS
- Successfully listed on the JSE on 7 April 2017, raising R2 billion
- Strong institutional shareholder support
- Well positioned to access additional capital
- Disciplined in deployment of capital, but ambitious on returns
- Management starting to engage actively in supporting recently acquired businesses –
Sorbet, Inhle Beverages and Holdsport
- Intention to access cash flows through 100% ownership where possible
Johannesburg, 27 October 2017: Investment holding company, Long4Life, has today reported
its inaugural interim results following its successful listing on the JSE Limited on 7 April 2017.
The company raised R2 billion from a wide-spectrum of institutional and other shareholders.
Long4Life founder and CEO, Brian Joffe said, "We are out of the starting blocks and we
have had a good beginning. The formation and structuring of the company, the compilation
of a skilled and knowledgeable board and management team, with significant transactional
experience, has progressed well. Our foundational investments are exciting and attractively
positioned to deliver future growth, while also providing the platform to conclude additional,
larger and value enhancing transactions going forward".
The capital raised from the JSE listing has been directed toward acquiring investments,
primarily in the personal care and wellness, as well as the sport and recreation sectors.
Mr Joffe commented, "While we are focused predominately on lifestyle-type investments,
we will always remain flexible enough to pursue opportunistic investments where we see the
possibility of adding scale, and ultimately value for shareholders".
Since its JSE listing, Long4Life has acquired control of:
- Sorbet, which operates a franchised business model offering a range of professional
beauty therapy treatments, as well as premium body and skincare products for women
and men;
- Inhle Beverages, which is one of South Africa's largest contract (co-packaging) beverage
packaging businesses; and
- Holdsport, the leading retailer selling sport, leisure and recreational merchandise through
a national store network operating the Sportsmans Warehouse and Outdoor Warehouse
chains, and the owner of various sport and recreational brands, as well as a supplier of
technical apparel to the industry.
Long4Life's management has started engaging the respective management teams of the
various companies acquired, particularly about Long4Life's philosophy of maintaining a
decentralised operating structure, but providing support in terms of financial, strategic, capital
access and allocation, as well as opportunity identification.
Mr Joffe added, "The future of the South African economy remains uncertain in the short- to
medium-term, but invariably in these circumstances, opportunities present themselves and
Long4Life is ideally positioned to take advantage in this situation".
Long4Life is a listed vehicle that encourages selected vendors to sell their businesses, while
still participating at the equity level of the Company, which is being diversified across sectors,
thereby spreading risk. This will maximise the potential for ambitious returns. "Our role",
said Mr Joffe, "is to direct and guide in terms of the discipline of the deployment of capital,
while offering any motivation that may be required to scale the businesses to a level possibly
considered unattainable by the original entrepreneur and owner".
While Long4Life's predominant objective is to acquire a 100% holding in the businesses
acquired, and thereby benefit from the cash flows, the Company is also open to selective
majority and minority interests.
The board intends to commence the payment of dividends with effect from the February 2018
financial year. This will be based on the operating income of the group, excluding passive
income, with appropriate dividend cover.
Mr Joffe concluded, "Long4Life is a work in progress, and we intend building a company that
can deliver quality operating earnings from good cash generating businesses, with low- to
medium-risk characteristics and with a reasonable line-of-sight to profitability.
"Following our recent acquisitions, we have more than R400 million in annualised EBITDA, and
we remain in a good cash position with R1.6 billion available for future investments. We are
patient for the right deal at a fair price. There is scope to gear against generating assets and
cash balances, as well as a capacity to use available scrip to acquire additional companies
that will contribute to the development of Long4Life. Any use of scrip will, however, be carefully
considered so as not to be dilutive, and to be value accretive for our shareholders".
ends
NOTE TO EDITORS:
About Long4Life
Long4Life is an investment holding company with a lifestyle focus that seeks to generate
superior returns for its shareholders over the medium- to long-term. Long4Life plans to invest
primarily in businesses with attractive growth prospects, led by strong, entrepreneurial-minded
management teams. The Long4Life Board of Directors are responsible for capital allocation
and play an active role in identifying and approving attractive investment opportunities.
Long4Life operates a decentralised management structure, providing financial, strategic and
management support to its investee companies.
ISSUED ON BEHALF OF: LONG4LIFE
BY: APRIO STRATEGIC COMMUNICATIONS
CONTACTS: Julian Gwillim - Aprio
Mobile: 082 452 4389
Tel: (011) 880 0037
www.long4life.co.za
Johannesburg
27 October 2017
Sponsor:
The Standard Bank of South Africa Limited
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