Wrap Text
Preliminary condensed consolidated results for the year ended 31 August 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")
PRELIMINARY CONDENSED CONSOLIDATED RESULTS
for the year ended 31 August 2017
- Earnings per share up 488%
- Headline earnings per share up 1 094%
- Net asset value up 53%
- Intrinsic net asset value up 17%
- Distribution per share up 25% to 5 cents
CONDENSED STATEMENT OF FINANCIAL POSITION
Reviewed Audited
At At
31 August 31 August
2017 2016
Note R'000 R'000
Assets
Non-current assets 1 965 107 1 024 092
Property, plant and equipment 95 257 37 359
Investment properties 1 665 954 822 225
Investments in joint ventures 81 959 37 617
Investments in associate entities 75 853 99 043
Loans receivable 39 779 22 903
Deferred tax asset 6 305 4 945
Current assets 268 516 166 572
Loans receivable 12 113 10 377
Investments 9 481 13 905
Inventories 52 284 101 213
Current tax asset 2 2
Trade and other receivables 24 705 8 515
Cash and cash equivalents 169 931 32 560
Non-current assets held for sale 3 588 -
Total assets 2 237 211 1 190 664
Equity and liabilities
Equity 954 329 601 222
Share capital and share premium 309 319 322 706
Treasury shares 2 (1 107) (2 559)
Fair value reserve 26 150 12 389
Foreign currency translation reserve (137) -
Share-based payment reserve 11 826 8 999
Accumulated profit 504 254 214 655
Total equity attributable to equity holders of the parent 850 305 556 190
Non-controlling interest 104 024 45 032
Liabilities
Non-current liabilities 1 007 495 492 753
Loans payable 907 140 444 179
Deferred tax liability 100 355 48 574
Current liabilities 275 387 96 689
Loans payable 220 306 61 145
Current tax liabilities 831 1 916
Trade and other payables 54 250 33 628
Total liabilities 1 282 882 589 442
Total equity and liabilities 2 237 211 1 190 664
Net asset value per share (based on shares in issue
at year-end) (cents) 391 255
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
Reviewed Audited
Year ended Year ended
31 August 31 August
2017 2016
R'000 R'000
Revenue 301 203 132 644
Total realised profit 91 211 3 391
Realised (loss)/profit on held-for-trading investments (302) 3 331
Realised (loss)/profit on sale of non-current assets (282) 60
Realised profit on sale of associate 91 795 -
Total profit from fair value adjustments 223 278 61 102
Fair value adjustment on held-for-trading investments 1 658 (8 690)
Fair value adjustment on investment properties 219 883 68 330
Reversal of impairment of loan 1 737 1 462
Other income 22 578 -
Employee benefits (40 325) (23 476)
Cost of property and land sold (79 356) (10 062)
Other operating expenses (90 923) (52 854)
Operating profit 427 666 110 745
Finance costs (70 887) (47 580)
Profit from equity accounted investment (net of tax) 47 860 20 825
Profit before income tax 404 639 83 990
Income tax (54 274) (22 335)
Profit for the year 350 365 61 655
Other comprehensive income
Items that will not subsequently be reclassified
to profit/(loss):
Fair value gain on revaluation of property, plant
and equipment 17 734 1 942
Tax effects of fair value adjustments (3 972) (876)
Items that are or may subsequently be reclassified
to profit/(loss):
Foreign currency translation differences on equity
accounted investments (137) -
Other comprehensive income for the year 13 625 1 066
Total comprehensive income for the year 363 990 62 721
Profit attributable to:
Equity holders of the parent 291 777 49 504
Non-controlling interests 58 588 12 151
350 365 61 655
Total comprehensive income attributable to:
Equity holders of the parent 305 402 50 570
Non-controlling interests 58 588 12 151
363 990 62 721
Basic earnings per share (cents) 134.0 22.8
Diluted earnings per share (cents) 123.1 21.1
CONDENSED STATEMENT OF CHANGES IN EQUITY
Share-
Total based
Share Share share Treasury payment
capital premium capital shares reserve
R'000 R'000 R'000 R'000 R'000
Balance at 1 September 2015 2 184 326 892 329 076 (2 559) 6 657
Total comprehensive income
for the year - - - - -
Profit for the year - - - - -
Fair value gain on revaluation of
property, plant and equipment - - - - -
Tax effects on revaluations - - - - -
Share-based payment expense - - - - 2 737
Settlement of share-based payment - - - - (395)
Ordinary shares issued 11 1 807 1 818 - -
Capital distribution - (8 188) (8 188) - -
Balance at 31 August 2016 2 195 320 511 322 706 (2 559) 8 999
Balance at 1 September 2016 2 195 320 511 322 706 (2 559) 8 999
Total comprehensive income
for the year - - - - -
Profit for the year - - - - -
Fair value gain on revaluation of
property, plant and equipment - - - - -
Tax effects on revaluations - - - - -
Share-based payment expense - - - - 2 847
Settlement of share-based payment - - - - (20)
Treasury shares cancelled (17) (4 680) (4 697) 2 559 -
Treasury shares acquired - - - (1 107) -
Foreign currency translation reserve - - - - -
Ordinary shares issued 1 91 92 - -
Capital distribution - (8 782) (8 782) - -
Change in shareholding - - - - -
Balance at 31 August 2017 2 179 307 140 309 319 (1 107) 11 826
Note 2
Foreign
currency Non-
translation Fair value Accumulated controlling Total
reserve reserve profit/(loss) Total interest equity
R'000 R'000 R'000 R'000 R'000 R'000
Balance at 1 September 2015 - 11 322 165 151 509 647 32 881 542 528
Total comprehensive income
for the year - 1 067 49 504 50 571 12 151 62 722
Profit for the year - - 49 504 49 504 12 151 61 655
Fair value gain on revaluation of
property, plant and equipment - 1 943 - 1 943 - 1 943
Tax effects on revaluations - (876) - (876) - (876)
Share-based payment expense - - - 2 737 - 2 737
Settlement of share-based payment - - - (395) - (395)
Ordinary shares issued - - - 1 818 - 1 818
Capital distribution - - - (8 188) - (8 188)
Balance at 31 August 2016 - 12 389 214 655 556 190 45 032 601 222
Balance at 1 September 2016 - 12 389 214 655 556 190 45 032 601 222
Total comprehensive income
for the year - 13 761 291 777 305 538 58 588 364 126
Profit for the year - - 291 777 291 777 58 588 350 365
Fair value gain on revaluation of
property, plant and equipment - 17 733 - 17 733 - 17 733
Tax effects on revaluations - (3 972) - (3 972) - (3 972)
Share-based payment expense - - - 2 847 - 2 847
Settlement of share-based payment - - - (20) - (20)
Treasury shares cancelled - - - (2 138) - (2 138)
Treasury shares acquired - - - (1 107) - (1 107)
Foreign currency translation reserve (137) - - (137) - (137)
Ordinary shares issued - - - 92 - 92
Capital distribution - - - (8 782) - (8 782)
Change in shareholding - - (2 178) (2 178) 404 (1 774)
Balance at 31 August 2017 (137) 26 150 504 254 850 305 104 024 954 329
CONDENSED STATEMENT OF CASH FLOWS
Reviewed Audited
Year ended Year ended
31 August 31 August
2017 2016
R'000 R'000
Cash flows from operating activities
Cash generated from operations 156 188 26 930
Finance income 10 710 2 041
Dividends received 297 435
Dividends received from associate - 8 891
Finance costs (70 887) (47 580)
Taxation paid (9 452) (36)
Net cash inflow/(outflow) from operating activities 86 856 (9 319)
Cash flows from investing activities
Acquisition of property, plant and equipment (44 864) (19 948)
Acquisition of and addition to investment properties (2 512) (32 439)
Proceeds on disposal of non-current assets 18 489 212
Loans receivable advanced (6 647) (537)
Proceeds on disposal of associate 190 751 -
Loans advanced to joint ventures and associates (8 089) (647)
Acquisition of associates (72 384) -
Acquisition of held-for-trading and available-
for-sale investments (120) (12 638)
Proceeds on disposal of investments 2 509 32 747
Net cash inflow/(outflow) from investing activities 77 133 (33 250)
Cash flows from financing activities
Issue of shares 92 1 818
Acquisition of treasury shares (1 108) -
Capital distribution (8 782) (8 188)
Decrease in borrowings (54 216) (11 467)
Increase in borrowings 37 297 37 577
Net cash (outflow)/inflow from financing activities (26 717) 19 740
Net increase/(decrease) in cash and cash equivalents 137 272 (22 829)
Cash and cash equivalents at the beginning of the year 32 560 55 389
Total cash and cash equivalents at the end of the year 169 832 32 560
NOTES
1. Presentation of annual financial statements
Trematon Capital Investments Limited (the "company") is a company domiciled in
South Africa. The consolidated financial statements of the company as at and for the
year ended 31 August 2017 comprise the company and its subsidiaries (together referred
to as the "group") and the group's interest in associates and joint ventures.
The financial statements were authorised for issue by the directors on 8 November 2017.
The preliminary condensed consolidated results ("the results") have been prepared
in accordance with the framework concepts and the measurement and recognition
requirements of International Financial Reporting Standards ("IFRS") and the SAICA
Financial Reporting Guides as issued by the Accounting Practices Committee and contain
the information required by IAS 34 - Interim Financial Reporting, the JSE Listings
Requirements and the Companies Act. The accounting policies and methods of computation
applied in the presentation of the results are consistent with those applied in the
prior year. These accounting policies and methods of computation are in terms of IFRS.
The results are stated in Rands, which is the company's functional and presentation currency.
There have been no changes to the board of directors during the year under review.
The results have been reviewed by the company's independent auditor, Mazars.
Their unmodified review opinion is available for inspection at the company's registered
office. Their review was conducted in accordance with ISRE 2410 "Review of interim
financial information performed by the independent auditor of the entity". The auditor's
report does not necessarily report on all of the information contained in these results.
Shareholders are therefore advised that in order to obtain a full understanding of the
nature of the auditor's engagement they should obtain a copy of the auditor's report
together with the accompanying financial information from the company's registered office.
Reviewed Audited
Year ended Year ended
31 August 31 August
2017 2016
2. Treasury shares
Number of shares held at year-end 423 650 1 772 771
R'000 R'000
3. Related party transactions
Profit from equity accounted joint ventures 44 342 9 583
Profit from equity accounted associates 3 519 11 242
Interest received from associates 80 101
Interest received from joint ventures 2 060 1 440
Dividend received from associate - 8 891
Administration fees received from associates 607 1 652
Administration fees received from joint ventures 646 132
Directors' emoluments 16 069 10 266
Reviewed Audited
Year ended Year ended
31 August 31 August
Gross Net Gross Net
2017 2017 2016 2016
R'000 R'000 R'000 R'000
4. Headline earnings per share
Headline earnings per share is calculated as follows:
Profit attributable to equity holders of the parent 291 777 49 504
Fair value adjustment on investment properties (219 883) (119 261) (68 330) (37 285)
Fair value adjustments within equity accounted profits (57 292) (36 701) (14 707) (8 522)
Realised profit on sale of associate (91 795) (91 795) - -
Realised loss/(profit) on sale of property, plant
and equipment 282 219 (60) (46)
Headline earnings 44 239 3 651
Headline earnings per share (cents) 20.3 1.7
Diluted headline earnings per share (cents) 18.8 1.6
The calculation of headline earnings per share is based on the weighted average
number of 217 710 577 shares in issue during the year (2016: 216 964 383).
The calculation of diluted headline earnings per share is based on the diluted
weighted average number of 235 858 407 shares in issue during the year (2016: 234 753 255).
5. Segmental information
Property UK Corporate Elimin-
Gaming investments Education investments and other ations Total
R'000 R'000 R'000 R'000 R'000 R'000 R'000
2017
Revenue 541 280 619 20 043 - - - 301 203
Net income before tax 94 161 308 786 313 439 940 - 404 639
Total assets - 1 885 744 79 789 72 687 198 991 - 2 237 211
Total liabilities - 1 275 113 7 769 - - - 1 282 882
Net asset value - 506 820 71 807 72 687 198 991 - 850 305
Intrinsic net asset value - 571 136 94 626 72 687 198 991 - 937 440
2016
Revenue 1 580 123 697 7 367 - - - 132 644
Intersegment revenue 8 891 - - - - (8 891) -
Net income before tax 22 290 60 061 245 - 1 394 - 83 990
Total assets 97 041 1 010 077 23 519 - 60 027 - 1 190 664
Total liabilities - 588 810 632 - - - 589 442
Net asset value 97 041 375 776 23 347 - 60 027 - 556 191
Intrinsic net asset value 190 000 527 060 23 347 - 60 027 - 800 434
The UK investments segment and corporate and other segment are new segments presented
in the current year.
For comparative purposes the prior year's segmental information has been restated and
is also presented.
6. Subsequent events
The directors are not aware of any material event which occurred after the reporting
date and up to the date of this report.
7. Capital distribution
The capital distribution of R8.8 million (4 cents per share) which was declared on
4 November 2016 was paid to members on 30 January 2017.
The capital distribution was treated as a return of contributed tax capital to shareholders
recorded in the share register of the company at the close of business on 27 January 2017.
On 8 November 2017, subsequent to year-end, the board of directors declared a capital
distribution of 5 cents per share as a return of contributed tax capital to shareholders
recorded in the share register of the company at the close of business on Friday,
15 December 2017.
The directors have determined that this capital reduction distribution will be paid out
of qualifying contributed tax capital, as contemplated in the definition of "contributed
tax capital" in section 1 of the Income Tax Act, 1962. As the distribution will be regarded
as a return of capital and may have potential capital gains tax consequences, Trematon
shareholders are advised to consult their tax advisers regarding the impact of the distribution.
The directors have reasonably concluded that the company will satisfy the solvency and
liquidity test immediately after the capital distribution.
The amount payable to shareholders is R10.9 million, being 5 cents per share,
based on the current number of 217 771 329 shares in issue.
The income tax reference number of Trematon Capital Investments Limited is 9340/323/84/0.
Last date to trade: Tuesday, 12 December 2017
Ex-date: Wednesday, 13 December 2017
Record date: Friday, 15 December 2017
Payment date: Monday, 18 December 2017
Share certificates may not be dematerialised or rematerialised between Wednesday,
13 December 2017 and Friday, 15 December 2017, both days inclusive.
8. Annual general meeting
Notice is hereby given that the annual general meeting ("AGM") of the members of
Trematon Capital Investments Limited will be held in the boardroom on the third floor,
Aria North Wharf, 42 Hans Strijdom Avenue, Cape Town on Wednesday, 24 January 2018
at 10:00.
CHAIRMAN'S REPORT
This is our 20th year as a JSE-listed company and the 12th year under current management.
We continue to grow and add value for our shareholders.
This report reflects the ongoing success of our evolving strategic direction and continued
investment in assets and operating businesses we believe will provide growth and value adding
opportunities over time.
Our 2017 financial results were excellent, despite challenging external conditions.
Our businesses have talented and committed management, many of whom are also shareholders in
the group's underlying operations. We believe that our specialised focus on our individual
businesses results in enhanced performance which in turn flows through to the holding company
and our shareholders.
Our focus on the Western Cape has proved advantageous, with the regional economy performing
slightly stronger than the rest of the country.
But we are not single-minded in our approach. Following our exit from the casino business,
we have expanded our property portfolio within the Western Cape, with less reliance on the
outlying areas and a greater focus on central Cape Town. We have established a well-accepted
and fast-growing education brand as well as a new offshore venture.
I would like to thank my fellow directors and the industrious management team and staff who
have so ably positioned the group for future growth.
Monty Kaplan
Chairman
CHIEF EXECUTIVE OFFICER'S AND CHIEF FINANCIAL OFFICER'S JOINT REPORT
Trematon is an investment holding company that invests in assets and operating businesses
which we believe will have the potential to generate an internal rate of return of 20% or
greater over time.
STRATEGIC HIGHLIGHTS
Transformative transactions were concluded during the financial year, including:
- realisation of some mature assets;
- recycling and diversification of capital into higher return assets;
- international investment into the United Kingdom;
- focusing on institutional quality, Western Cape-based property assets - both commercial
and residential; and
- commitment to growing our education brand in terms of both quality and geographic spread.
The group's operations are not limited to a specific commercial area although there is
currently a strong focus on Western Cape property-related investments.
We differ, however, from traditional Real Estate Investment Trusts ("REITs") due to our
strong focus on value added opportunities rather than rental income. While this means our
returns are not necessarily as stable or predictable as those of REITs, our returns should
compare favourably, over time.
The last few years have been transformative for the group. We have aggressively recycled
capital, realising some of our more mature assets and investing in assets with better
growth potential.
A number of strategic initiatives have included realising some of our Club Mykonos assets,
diversifying into education through Generation Education and, recently, diversifying
geographically with an investment in ASK Partners ("ASK"), a United Kingdom-based company
offering funding solutions to property developers.
These material transactions have the potential to dramatically reshape the group's net
asset value ("NAV") and growth trajectory over the next few years.
While we own some operating businesses with stable income flow, several realisations
and revaluations in the current financial year have resulted in significant increases in
NAV and earnings.
Our earnings pattern remains fairly irregular as we continue our strategic trajectory but
we are increasingly deriving a higher proportion of income from annuity sources.
The most important measure of Trematon's value remains intrinsic NAV ("INAV"), which gives
shareholders a realistic valuation of the underlying assets of the business. This is calculated
and explained in some detail in a separate INAV report which can be found below.
Investment holding companies have a tendency to trade at a discount to INAV for long periods,
which makes it challenging to return full value to shareholders over time and difficult to issue
capital at commercially sensible share prices. Management is aware of this conundrum and,
if the discount persists for long periods, will consider ways to return equity to shareholders
at full value via distributions (direct or in specie) or unbundlings. Several of the underlying
investments in the group will, in due course, sustain their own listings and consideration will
be given to mechanisms to distribute this value efficiently to shareholders over time. It is
also possible that the group will repurchase its own equity in the open market if attractive
opportunities present themselves. Management is also committed to a programme of communication
with existing and potential shareholders to ensure that there is an informed investing public -
this process has been successful in measurably improving liquidity and investor awareness over
the past 12 months.
Club Mykonos Langebaan ("CML"), historically the biggest single component of INAV, now accounts
for less than 15% of INAV following the realisation of the Mykonos Casino, the sale of land and
the completion and sale of the Marina Village development.
That capital has been recycled into our other major areas of operation - Aria Property Group
("Aria") (commercial, retail and industrial property investments), Resi Investment Group
("Resi") (residential property investments), Generation Education (a new education paradigm
using the Montessori and Cambridge systems) as well as ASK Partners - where we believe there is
potential to allow NAV to grow faster in future.
We have established a good track record in commercial, residential and leisure property,
specifically in identifying value added opportunities and bringing investments to realisation,
and this is reflected in our 53% growth in NAV per share and 17% increase in INAV per share.
Our diversification into other areas of investments with significant NAV growth potential is
evident in Generation Education and the recent investment into ASK.
We have a healthy cash balance at the centre and a strong investment pipeline where this cash
will be deployed.
While our strategy may result in some earnings variance over time, we expect dividend
distribution to be more regular. Our 2017 dividend distribution of 5 cents per share represents
a 25% increase over 2016 and a compound growth of 19% in distributions (excluding special
dividends) since we commenced distributions in 2011.
RESULTS
The 2017 financial year was a significant year in the history of the group, which celebrated
20 years as a listed company. The group achieved record levels of turnover, profits and
distributions based on both realisations of investments and value added in some of our more
recent acquisitions.
The group made a profit, which includes capital realisations, fair value adjustments and
operating profits for the year attributable to equity holders of R291.8 million
(2016: R49.5 million), resulting in earnings of 134 cents per share, 488% higher than the
22.8 cents reported in 2016. Headline earnings increased 1 094% to 20.3 cents (2016: 1.7 cents)
per share.
These increases reflect consistent performance of our core operations as well as focused
management which has increased profits across the group.
Net asset value has increased by 53% to 391 cents (2016: 255 cents) per share while
intrinsic net asset value, which provides investors with a realistic and transparent
evaluation of Trematon's performance and value, increased by 17% to 431 cents
(2016: 368 cents) per share.
CLUB MYKONOS LANGEBAAN (100%)
Since 2008 Club Mykonos has been a major component of the group's NAV and has delivered
good growth, but we recognised that we had already extracted significant value from this
asset and had a relatively high level of exposure (more than 50% of NAV in 2016) to a
relatively small area of the Western Cape.
The subsequent realisation of the casino, sale of land and the development and sale of
Marina Village has reduced its contribution to NAV to less than 15%.
CML contributed a profit for the year of R141.8 million (2016: R20.5 million), largely reflected
in the sale of our share in the Mykonos Casino and vacant land adjacent to the casino which
realised cash of R220 million. The balance of the profit was earned from rental income and
other services, including profits from the Marina Village development which was completed
during the year and fully sold out.
CML continues to provide a stable and growing income stream and has continued to add value.
There are still a large amount of development opportunities available at the resort and we
are exploring possible future developments to unlock value.
ARIA PROPERTY GROUP (67%)
The focus of Aria over the past few years has been to improve the quality of the portfolio
by purchasing institutional grade assets preferably (although not exclusively) located in
the Western Cape.
During the year Aria concluded the purchase of a R614.1 million portfolio of commercial,
retail and industrial properties from Redefine Properties Limited. One of the properties,
Pier Place, located in the Cape Town CBD, was purchased vacant for R170 million and Aria
has successfully concluded leases for 78% of the gross leasable area.
The balance of the portfolio has performed well, with Aria contributing R180.8 million
(2016: R38.4 million) to group profit, largely due to improved operations and fair value
adjustments.
The value of the portfolio is in excess of R1.3 billion including interests in joint
ventures and associates. The five largest properties in the portfolio, representing 64%
of the total portfolio value, have been externally valued by independent valuers.
GENERATION EDUCATION (97%)
Generation Education commenced operations in January 2016 and the model has proven to
be successful.
There are now 500 pupils enrolled in two schools. Pupil numbers have increased by over
200% in 2017 and new schools purchased or under development are expected to increase
the number of pupils to 2 400 within three years.
Trematon 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 children need to develop
knowledge and life skills with a particular focus on ensuring post-school employability.
Generation Education contributed a profit of R0.1 million (2016: R0.3 million) to earnings
for the year.
Profit has not grown in line with the R12.4 million increase in revenue (to R20 million)
as expenses were incurred on new staff and training to ensure we are ready for the
2018 school year. Teachers were hired and trained during the current year to ensure a
smooth transition into the new schools once construction is completed.
The Sunningdale and Hermanus campuses have been expanded to include a middle school
and additional schools, as well as land for development of new schools, have been purchased.
Generation has acquired 6 existing school sites of which 4 will be operating by
January 2018. Further acquisitions are in the process of investigation and we expect to
meet our target of 10 school sites by the end of 2018.
RESI INVESTMENT GROUP (100%)
The original focus of the Resi Group was on the purchase of underpriced mid-market
rental units, but since the pipeline of suitable assets available slowed, Resi has
shifted its focus to new-build developments or redevelopments, usually in conjunction
with a joint venture partner with complementary skills.
This has enabled it to continue to perform well, contributing R28.3 million
(2016: R12.8 million) to group profits. Our latest development, a joint venture in
Sanddrift, Western Cape, has proven to be very successful and added value as expected.
Resi's current portfolio comprises over 600 residential units in the Western Cape.
Resi has, in conjunction with our JV partners, accumulated significant bulk in key nodes
which will, in time, be developed into high-density, safe, comfortable and efficient
housing units in the high-demand market sector.
ASK PARTNERS (40%)
Trematon invested R72.4 million (GBP4.3 million) in ASK, which is based in the
United Kingdom.
The business aims to provide innovative structured financing to property developers
in the United Kingdom.
To allow for efficient recycling of capital, ASK will refinance each transaction via a
syndication process whereby 90% of the loan value will be syndicated to high net worth
individuals and 10% will be retained by ASK. Following syndication the investment will
have generated a return in pound sterling which meets Trematon's minimum required
return and the original investment will be recycled to finance future secured property
loans and developments.
As the investment was made towards the end of Trematon's financial year a small net
profit of R0.4 million was earned for the period.
CONCLUSION
The 2017 financial year has been one of significant growth for the group and has gone
hand in hand with the implementation of our strategy to exploit growth and value adding
opportunities.
Transformative new investments in all the major operating areas have proved successful
and the group continues to look for similar opportunities while continuing to enhance
the operations currently under its control.
Arnold Shapiro Arthur Winkler
Chief Executive Officer Chief Financial Officer
INTRINSIC VALUE REPORT
Trematon is an investment holding company and uses the intrinsic value model to provide
management and investors with a realistic and transparent way of evaluating Trematon's
performance and value.
The intrinsic net asset value report below illustrates the intrinsic net asset value
of all investment categories of the group for the year ended 31 August 2017.
The preparation of the intrinsic net asset value is the responsibility of the directors
of Trematon. The intrinsic net asset value has been prepared to assist investors in
analysing future prospects of the group.
The financial information below has been compiled by using a combination of listed market
values, external professional valuations, or directors' valuations, where applicable.
The intrinsic net asset value is also presented as part of the group's segmental information
in the audited annual financial statements and, for comparative purposes, the prior year's
information is also presented.
Intrinsic value
Year ended Year ended
31 August 31 August
2017 2016
Notes R'000 R'000
Club Mykonos Langebaan 1 132 836 428 038
Aria Property Group 1 226 860 105 371
Resi Investment Group 1 211 440 183 651
Generation Education 2 94 626 23 347
ASK Partners 3 72 687 -
Other 4 29 060 27 567
Cash 169 931 32 560
Total 937 440 800 534
Number of shares in issue 217 347 679 217 713 829
Intrinsic NAV per share (cents) 4.31 3.68
Notes
1 The assets have been valued by using a combination of directors' valuation and/or
external professional valuers, where applicable.
2 The school operations have been valued using a combination of discounted cash flows
and price-earnings models. The school properties are carried at market value using
directors' valuations for completed schools and build costs incurred to date on school
properties under construction.
3 The investment is carried at cost less minor foreign currency losses at year-end.
4 "Other" includes listed shares, held directly and indirectly, and other minor assets
less related debt.
Domicile and registered office: 3rd Floor, Aria North Wharf
42 Hans Strijdom Avenue, Foreshore, Cape Town, 8001
PO Box 7677, Roggebaai, 8012, South Africa
Contact details: Tel: 021 421 5550
Website: www.trematon.co.za
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
Transfer secretaries: Link Market Services South Africa (Pty) Limited
19 Ameshoff Street, Braamfontein, 2001
Sponsor: Sasfin Capital, a member of the Sasfin Group
Auditor: Mazars
Engagement partner - Yolandie Ferreira
Published date: 20 November 2017
Prepared by: The group financial results have been prepared under the supervision
of the chief financial officer, Mr AL Winkler CA (SA).
The preliminary condensed consolidated results have been independently reviewed in
compliance with the requirements of the Companies Act of South Africa.
Date: 20/11/2017 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
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