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Salient features extracted from audited preliminary results for year ended 31/12/2022 and cash dividend declaration
SABVEST CAPITAL LIMITED
Incorporated in the Republic of South Africa
Registration number 2020/030059/06
“Sabcap” or “the Group” or “the Company”
ISIN: ZAE000283511
JSE share code: SBP
SALIENT FEATURES EXTRACTED FROM THE AUDITED PRELIMINARY SUMMARISED
RESULTS FOR THE YEAR ENDED 31 DECEMBER 2022 AND CASH DIVIDEND
DECLARATION
PROFILE
Sabvest Capital Limited (Sabcap) is an investment group first
listed on the JSE in 1988 as Sabvest Limited and as Sabcap from
2020. The Seabrooke Family Trust (SFT) has voting control of
Sabcap through an unlisted Z share and has an economic interest of
40,5% through its holding in the listed ordinary shares. At the
year-end Sabcap had 39 400 000 shares in issue net of treasury
shares (2021: 39 530 000).
Sabcap has long-term interests in thirteen unlisted and three
listed investments, all accounted for on a fair value basis.
Sabcap’s primary focus is on industrial and service businesses,
usually unlisted and co-invested with family, management or
financial partners in terms of Sabcap’s Partnership Principle.
Sabcap also makes finance advances and holds listed debt, equity
and cash portfolios when it has surplus liquidity, and undertakes
other fee and profit earning activities from time to time.
RESULTS
%
change 2022 2021
Net asset value per
share – cents +17,6 11 017 9 371
Headline earnings per
share – cents (5,8) 1 591,2 1 689,7
Earnings per share – cents (5,9) 1 590,7 1 689,6
Dividends per share – cents +20,0 90 75
Revenue * – R’m (11,9) 240,7 273,1
Profit after taxation – R’m (7,6) 627,9 679,2
Total comprehensive income – R’m (7,6) 679,6 735,2
Shareholders’ funds – R’m +17,2 4 340,9 3 704,3
Gross assets – R’m +19,8 5 110,1 4 265,2
* Revenue comprises dividends, fees and interest.
GROWTH METRICS
Sabcap’s primary financial metric is growth in NAV per share. The
15-year compound annual growth rate (CAGR) in NAV per share to the
2022 year-end was 17,0%, calculated without reinvesting dividends.
The CAGR after reinvesting dividends was 18,1% (calculated with
dividends notionally not paid and the amounts notionally retained
by the Company, growing at 10% per annum).
Sabcap’s share price is usually at a discount to its NAV per share
but the discount narrowed considerably in 2022. However,
notwithstanding the fluctuating discounts in different periods,
the growth in share price itself over different periods is set out
in the table below. The growth rate over one year was 37,1% and
the CAGR over 15 years was 16,3%.
Percentage Compound Growth
1 year 3 years 5 years
Cents % % %
NAV per share 11 017 17,6 18,3 16,7
Market price per share * 8 360 37,1 31,2 26,5
GROWTH METRICS (continued)
Percentage Compound Growth
10 years 15 years
% %
NAV per share 19,5 17,0
Market price per share * 17,3 16,3
* The one-year CAGR is calculated using the Sabcap share price,
with the remaining CAGRs calculated with reference to the
weighted average share prices of the Sabvest ordinary and ‘N’
ordinary shares.
INVESTMENT HOLDINGS PER SECTOR
as at 31 December 2022
Number
of Economic Fair
Listed/ ordinary interest value
Unlisted shares/units % R’000
INDUSTRIAL
AND SERVICES
Apex Partners
Holdings (Pty) Ltd U 44,8 504 023
ARB Holdings
(Pty) Ltd U 18,5 250 256
Classic Food Brands
(Pty) Ltd U 40,0 8 205
DNI-4PL Contracts
(Pty) Ltd U 19,9 1 028 087
Flexo Line
Products (Pty) Ltd U 47,5 7 033
Halewood
International
South Africa
(Pty) Ltd U 19,0 165 586
ITL Holdings Group U 34,4 786 454
Metrofile Holdings
Limited L 56 000 000 13,1 196 000
SA Bias Industries
(Pty) Ltd U 85,2 1 018 861
Sunspray Food
Ingredients
(Pty) Ltd U 27,7 86 624
Valemount Trading
(Pty) Ltd U 39,3 44 721
4 095 850
MINING, CHEMICALS
AND AGRICULTURE
Masimong Group
Holdings (Pty) Ltd U 10,0 452 510
Rolfes Holdings
(Pty) Ltd *1 U 25,0 189 289
641 799
SPECIALISED FINANCIAL
AND TECHNOLOGY
Corero Network
Security Plc L 50 000 000 10,1 94 486
Revix UK U 11,0 –
Transaction Capital
Limited *2 L 5 000 000 0,7 165 500
259 986
TOTAL NON-CURRENT INVESTMENT HOLDINGS 4 997 635
*1 Reclassified during the current reporting period due to a
change in its business mix with the proportion from food
chemicals increasing materially (previously classified under
Industrial and Services).
*2 In a SENS announcement released on 14 March 2023, Transaction
Capital (“TC”) advised shareholders that the cyclical headwinds
facing its SA Taxi division post the disruption of COVID,
together with the ongoing effects of load shedding and adverse
economic conditions, necessitate a simplification of its
business model to a lower and more variable cost base, higher
quality loan origination and a lower number of new loans. As a
consequence, TC has advised of the need for one-off provisions
against SA Taxi’s loan book and repossessed inventory, and
signaled lower TC core EPS in the coming reporting period. The
TC share price dropped materially after the announcement. As a
result, the fair value of Sabcap’s investment in TC has reduced
from R165,5m at 31 December 2022 to R73,0m at 15 March 2023
(being the last practicable date before the release of Sabcap’s
2022 results). After adjusting for deferred tax of R20,0m on
this movement, the net impact of R72,5m on Shareholders Equity
is equivalent to a reduction of 184c in Sabcap NAV per share of
11 017c at the reporting date.
PROSPECTS
Sabcap is comfortable with the current performance and future
prospects of most of its unlisted investees and, in particular, of
the new investments concluded during the period. The share prices
of its three listed investments are market determined and their
fair values are the market prices at each reporting date.
Accordingly, Sabcap expects satisfactory growth in NAV per share
in 2023. It is also worth noting that the discount of Sabcap’s
share price to its NAV per share narrowed considerably in 2022 and
Q1 2023, and the growth in share price continues to track or
exceed the growth in NAV per share.
Management regards Sabcap as fully invested at the present time.
References to future financial information in this announcement
have not been reviewed or reported on by the Group’s auditors.
CASH DIVIDEND DECLARATION
Notice is hereby given that a final dividend of 60 cents (2021: 55
cents) per ordinary share for the year ended 31 December 2022 has
been declared out of income reserves making a total of 90 cents
for the year (2021: 75 cents).
The issued share capital of the Company at the declaration date is
39 550 000 ordinary shares. The income tax number of the Company
is 9660061186.
Withholding tax on dividends at a rate of 20% will be deducted for
all shareholders who are not exempt in terms of the applicable
legislation. This will result in a final net cash dividend of 48
cents per ordinary share to non-exempt shareholders.
Last date to trade “CUM” dividend Tuesday, 11 April 2023
Trading “EX” dividend commences Wednesday, 12 April 2023
Record date Friday, 14 April 2023
Dividend payment date Monday, 17 April 2023
No dematerialisation or rematerialisation of share certificates
will be allowed during the period Wednesday, 12 April 2023 to
Friday, 14 April 2023, both days inclusive.
Sandton
16 March 2023
The short-form announcement, prepared by the directors, has itself
not been audited, however, the financial information included
herein has been correctly extracted from the audited consolidated
annual financial statements which have been audited by Deloitte &
Touche.
This announcement is a summary of information in the full
announcement and does not contain full or complete details and is
the responsibility of the directors. Any investment decisions by
investors and/or shareholders should be based on the full
announcement which is available on
https://senspdf.jse.co.za/documents/2023/JSE/ISSE/SBPE/YEres22.pdf
and published on the Company’s website on
http://www.sabvestcapital.com/pdf/2023/YE-results-Dec22.pdf on
16 March 2023. The full announcement is also available for
inspection at Sabcap’s registered office and the offices of the
sponsor at no charge, between 8:30 and 17:00, Monday to Friday or
may be requested by emailing ho@sabvest.com.
The annual financial statements including the audit opinion of the
external auditor, Deloitte & Touche, which sets out the key audit
matters and the basis for its unmodified opinion, is available on
the Company’s website on
http://www.sabvestcapital.com/pdf/2023/AFS-Dec22.pdf
SABVEST CAPITAL LIMITED
REGISTERED ADDRESS:
4 Commerce Square, 39 Rivonia Road, Sandhurst, Sandton 2196
COMMUNICATIONS:
Postal address: PO Box 78677, Sandton 2146, Republic of South
Africa
Telephone: (011) 268 2400
Fax: (011) 268 2422
e-mail: ho@sabvest.com
TRANSFER SECRETARIES:
Computershare Investor Services (Pty) Ltd, Rosebank Towers, 15
Biermann Avenue, Rosebank 2196 (PO Box 61051, Marshalltown 2107)
DIRECTORS:
K Pillay # (Chairperson), O Ighodaro # (Lead Independent
Director), CS Seabrooke * (Chief Executive), BJT Shongwe #
L Mthimunye #, K De Matteis *, L Rood *
*Executive #Independent
SPONSOR:
Rand Merchant Bank (A division of FirstRand Bank Limited), 1
Merchant Place, Corner of Fredman Drive and Rivonia Road, Sandton
2196
COMPANY SECRETARY:
Levitt Kirson Business Services (Pty) Ltd
www.sabvestcapital.com
Date: 16-03-2023 05:30:00
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