Wrap Text
Reviewed Condensed Financial Results
for the year ended 29 February 2020 and cash dividend declaration
Gaia Infrastructure Capital Limited
(Incorporated in the Republic of South Africa)
(Registration number 2015/115237/06)
ISIN: ZAE000210555
JSE code: GAI
(“GAIA” or “the Company”)
Extract from the Reviewed Condensed Financial Results
for the year ended 29 February 2020 and cash dividend declaration
Salient features:
• Tangible NAV * per share at R10.7, a 3% increase from the previous corresponding period
• Robust financial position with net cash of R29.0 million as at the end of the period under review
• Total revenue increased by 29.6% to R63.2 million primarily due to an increase in the fair value
movement of the AUM**
• Basic EPS *** and HEPS *** up 28% to 71.6 cents (2019: 56.1 cents)
• Final gross cash dividend declaration of 15.0 cents per share
• Gross assets under management at R758.1 million
• Termination of management services agreement for R18.0 million effected post year-end
*net asset value **Assets under management **) Earnings per share
Commentary
Effective 15 April 2020, GAIA agreed terms with Gaia Infrastructure Partners Proprietary limited to
terminate the management services agreement, in consideration for payment by the Company of a
reduced termination fee of R18.0 million (the “Internalisation Transaction”). The Internalisation
Transaction was duly approved by shareholders by 10 June 2020. It is intended to improve alignment
in interests as between the Company’s management and its shareholders.
Investment portfolio
GAIA is an infrastructure investment company and it offers shareholders investment exposure to large
scale infrastructure assets in Southern Africa. The Company’s shares are listed and traded on the Main
Board of the JSE Limited. The Company is mandated to invest in operationally derisked infrastructure
assets in the energy, transportation, as well as water and sanitation sectors. The Company aims to
earn annualised gross real return of 6% on its invested capital. In its investment approach, the
Company has regard to environmental, social and governance considerations.
The Company’s current asset base is predominantly held through its subsidiary, GAIA Financial
Services (RF) (Pty) Ltd. The two companies have the same investment objectives. This asset base
comprises interests in two wind farms and three solar photo voltaic farms that were licensed in round
1 of the Renewable Energy Independent Power Producer Procurement Programme ("REIPPPP") in
South Africa.
Extract from Condensed Statement of Comprehensive Income
for the year ended 29 February 2020
Reviewed Audited %
29 February 2020 28 February change
R’000 2019
R’000
Interest income 1 854 2 063 (10.1)
Dividend income 25 073 32 600 (23.1)
Net fair value movement 36 239 14 051 157.9
Other income - 25
Total revenue 63 166 48 739 29.6
Operating expenses (23 226) (17 586) 32.1
Operating profit 39 940 31 153 25.0
Finance cost & Tax (430) (217)
Net profit for the year 39 510 30 935 27.7
Net asset value per share
Basic earnings per share (cents) 71.64 56.09 27.7
Headline earnings per share (cents) 71.64 56.09 27.7
The Company’s revenue for the financial year ended 29 February 2020 increased by 29.6% to R63.2
million compared to R48.7 million in the previous year. This increase was mainly as a result of the
change in the fair value of the financial assets and liabilities from R14.1 million to R36.2 million.
Operating expenses for the period were R23.2 million. These included a write-down of R8.6 million
prepayment for transaction costs, which previously had been capitalised. Excluding the non-recurring
transaction costs of R8.6 million, the operating expenses would have improved by 18% in comparison
to the previous reporting period, with expenses to gross assets under management ratio remaining
stable.
Earnings per share increased by 27.7% to 71.6 cents per share compared to 56.1 cents per share in
2018. There were no potential dilutive shares in issue, or headline adjustments required. Therefore,
diluted earnings per share and headline earnings per share were in line with basic earnings per share.
Dividend distribution
Further to the interim cash dividend of 25.0 cents per share (R13.8 million) for the six months ended
31 August 2019, paid on 23 December 2019, notice is hereby given that the Board has declared a final
gross cash dividend of 15.0 cents per ordinary share (R8.3 million) for the year ending 29 February
2020. The total dividend relating to the 2020 financial year is 40.0 cents per share, compared to 39.6
cents per share declared and paid in the 2019 financial year.
• The dividend has been declared from income reserves
• The dividend withholding tax rate is 20%, and a net dividend of 12.0 cents (February 2019:
11.8 cents) per share is paid to those shareholders who are not exempt from dividend
withholding tax
• The Company’s income tax number is 9473/844/17/4
• The issued share capital at the declaration date is 55 151 000 ordinary shares
The payment date for the dividend is 24 August 2020.
Salient dates for the dividend will be as follows:
Last day to trade cum the ordinary share dividend Tuesday, 18 August 2020
Ordinary shares commence trading ex-dividend Wednesday, 19 August 2020
Ordinary share dividend record date Friday, 21 August 2020
Payment date of ordinary share dividend Monday, 24 August 2020
Share certificates may not be dematerialised or rematerialised between Wednesday 19 August 2020
and Friday, 21 August 2020, both days inclusive.
This final dividend amounting to R8.3 million has not been recognised as a liability in the reviewed
condensed annual financial results. It will be recognised in shareholders’ equity for the year ended 28
February 2021.
Statement
This short form announcement is the responsibility of the Directors and is a summary of the
information contained in the full announcement and does not contain full or complete
details.Furthermore, this short-form results announcement has not been reviewed, audited or
reported on by GAIA's auditors but has been extracted from the reviewed annual condensed
financial statements for the year ended 29 February 2020 and cash dividend declaration. Any
investment decision should be based on the full announcement copies of which are also available for
inspection at our offices and our sponsor’s offices on workdays during business hours, at no charge
Availability
The full announcement is available on the following websites:
GAIA: https://www.gaia-ic.com/documents/GAIA-year-end-results-2020.pdf
and
JSE: https://senspdf.jse.co.za/documents/2020/jse/isse/gaie/gaia2020.pdf
The consolidated reviewd condensed financial results were reviewed by Deloitte & Touche who
issued an unmodified reviewed opinion on these financial statements. Their review opinion, together
with the accompanying reviewd financial statements, can be viewed on the Company's website.
By order of the Board
29 July 2020
Sponsor
Sasfin Capital (a member of the Sasfin Group)
29 Scott Street
Waverley
Date: 29-07-2020 04:11:00
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