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Audited summary consolidated financial statements and cash dividend declaration for the year to 28 February 2022
Tradehold Limited
(Registration number: 1970/009054/06)
Incorporated in the Republic of South Africa
JSE Ordinary Share code: TDH ISIN: ZAE000152658
JSE B Preference Share code: TDHBP ISIN: ZAE000253050
("Tradehold" or "the Group")
Audited summary consolidated financial statements and cash dividend
declaration for the year to 28 February 2022
Key information
- Total assets: £830 million (2021: £817 million)
- Headline earnings per share: 6.1 pence (2021: loss 1.9 pence)
- Revenue: £79.2 million (2021: £74.3 million)
- Ordinary shareholders' equity: £240.2 million (2021: £225.2 million)
- Net profit attributable to ordinary shareholders: £20.3 million
(2021: net loss £39.7 million)
- Tangible net asset value per share: 101.3 pence R20.96
(2021: 94 pence R19.75)
- Final dividend of 30 cents per ordinary share declared.
Tradehold Group
Tradehold's net assets at the reporting date were split across the United
Kingdom in pound sterling (38.8%), United States dollar assets in Africa
(7.5%), Euro assets in Austria (6%) and the balance in South African rand
(47.7%). In South Africa it owns 74.3% of Collins Property Group. In the UK
it holds 100% of Moorgarth Property Group, including a 90% stake in
Boutique, a provider of flexible office accommodation.
Collins Group
Its primary focus is on industrial space and distribution centres that
together account for 77% of its gross lettable area (GLA) of 1.5 million m2.
The total value of its portfolio has increased to £463 million
(R9 584 million) from £444 million (R9 311 million) a year ago.
The nature and composition of the portfolio have largely buffered the
company against the impact of the pandemic, with a 98.8% collection rate
achieved of all income due. Currently, 69% of local income is derived from
tenants listed on the JSE. OBI, Europe's third largest DIY retailer,
accounts for 95% of Collins' offshore income.
At the end of the financial year the weighted average lease expiry date
(WALE) was 5.7 years, a factor which considerably lowers the company's
vacancy risk in the short term. Although still low at 2.5%, the total
vacancies in the portfolio for the year were slightly up from the 2.3% in
2021.
Collins is working continuously to reduce the cost of debt, that dropped to
an average of 7.5%. Of total debt, 52% is fixed while 30% of rental income
escalates directly with the consumer price index (CPI). This results in 82%
of total debt being hedged against interest rate movements, either directly
or indirectly. In the year to February, Collins reported a profit before
minorities of R574 million. Collins' contribution to the group's net profit
after minorities was £16.7 million (2021: loss of £6.9 million).
Moorgarth
Further lockdowns at the beginning of the financial year, followed by
intermittent partial lockdowns and closures, severely hampered economic
recovery. Emergency strategies embedded at the start of the pandemic in 2020
to minimise capital spend and reduce operating costs while implementing
innovative ways of driving sales and revenue, continued during the year.
Moorgarth managed to collect more than 90% of all rent due across the
portfolio. It continued servicing all its debt in full for the reporting
period and contributed £4.3 million to the group's net profit.
With shopping centres having proven particularly vulnerable to changes in
global retail trends, Moorgarth has continued its efforts to reduce its
exposure to retail, now representing 51% of the total value of the portfolio
including joint ventures. The balance comprises mostly commercial
properties.
The pending sale of its major co-owned retail complex in Reading near London
has progressed slower than expected. Income from its other major shopping
centre, Market Place Bolton in Greater Manchester, was considerably
curtailed by the insolvency of its anchor tenant, Debenhams, in May 2021.
Boutique
Boutique provides flexible office accommodation in 33 buildings in London,
Oxford and Birmingham, five of which are owned by Moorgarth, who are seeking
to acquire more properties suited to Boutique's needs. It ended the year
with a loss of £697 000.
Management's positive outlook for the future is supported also by the
noticeable shift in the number of existing clients looking to expand the
space they occupy at present.
During the full year Boutique remained cash-positive as it has throughout
the pandemic and was able to meet all its debt obligations without any
additional borrowing.
Outlook
Although the effects of the pandemic are slowly beginning to diminish, new
challenges are facing our operations in South Africa as well as the UK.
Collins, largely focused on KZN, had nine properties affected by the recent
devastating floods in that province. Although the damages are still being
assessed, Collins is adequately insured against any loss.
As far as the UK is concerned, its recovery, as with many countries, is
being hampered by inflation, continuing trading issues following Brexit and
now the war in Ukraine. The group's management teams, toughened by the
enormous challenges of the pandemic, will continue to restructure its
portfolio and repurpose assets to adapt to the changing market.
Boutique finds itself in a good space in a growing market for flexible
office accommodation that can be rapidly tailored to specific tenant needs.
The UK businesses will work closely together to find new opportunities for
growth and expansion.
Ordinary share cash dividend
The board of directors of Tradehold (the "Board") declared a gross cash
dividend of 30 cents per ordinary share on 23 May 2022. The cash used for
this purpose is Tradehold's share of the distributions made by the Collins
Group every six months in terms of the agreement with its minority
shareholders. The dividend will reduce Tradehold's stated capital.
The distribution constitutes a foreign dividend as defined in section 1 of
the Income Tax Act ("ITA") and is a dividend for purposes of dividends tax
("DT"), since the shares are listed on the JSE Limited.
An exemption from DT is provided for in the ITA in respect of foreign
dividends paid to a South African company and to a non-resident to the
extent that it is paid in respect of listed shares, provided certain
administrative procedures are complied with.
The ITA further provides for an exemption from income tax in respect of
foreign dividends received or accrued in respect of listed shares.
In terms of the ITA, DT of 20% has been withheld for those shareholders who
are not exempt from DT. Shareholders who are not exempt from DT will
therefore receive a net dividend of 24 cents per ordinary share.
Tradehold has 261 346 570 ordinary shares in issue. Its income tax reference
number is 9725/126/71/9.
The salient dates for the dividend are as follows:
Declaration date Monday, 23 May 2022
Last date to trade cum dividend Tuesday, 7 June 2022
Date trading commences ex dividend Wednesday, 8 June 2022
Record date Friday, 10 June 2022
Date of payment to shareholders Monday, 13 June 2022
Share certificates may not be dematerialised or rematerialised between
Wednesday, 8 June 2022, and Friday, 10 June 2022, both days inclusive.
CH Wiese KL Nordier
Chairman Director
23 May 2022
FULL ANNOUNCEMENT
The contents of this announcement is the responsibility of the directors
of Tradehold Limited. It is only a summary of the information contained
in the complete audited summary consolidated financial statements for the
year to 28 February 2022 ("Full Announcement"). Any investment decisions
by investors and shareholders should be based on consideration of the
Full Announcement published on SENS on Monday, 23 May 2022 which is
available at the following link:
https://senspdf.jse.co.za/documents/2022/jse/isse/tdh/YE2022.pdf and on
Tradehold's website at www.tradehold.co.za. Copies of the Full Announcement
are available for inspection and may be requested at no charge from
Tradehold's registered office at Leinster Hall, 7 Weltevreden Street,
Gardens 8005, or from that of its sponsor, Questco Corporate Advisory (Pty)
Ltd, Ground Floor, Block C, Investment Place, 10th Road, Hyde Park, 2196 at
no charge, from Monday to Friday during office hours.
These annual results have been audited by the Company's auditors,
PricewaterhouseCoopers Inc. who expressed an unmodified audit opinion
thereon. That report also includes communication of key audit matters. This
opinion is available, along with the annual financial statements on the
Company's website at www.tradehold.co.za.
DIRECTORS AND ADMINISTRATION
Executive directors: TA Vaughan, FH Esterhuyse, KL Nordier
Non-executive directors: CH Wiese (alternate JD Wiese), HRW Troskie,
MJ Roberts, KR Collins, LL Porter, PJ Roelofse
Independent non-executive directors: HRW Troskie, MJ Roberts, LL Porter
Company secretary: PJ Janse van Rensburg
Transfer secretary: Computershare Investor Services (Pty) Ltd
Sponsor: Questco Corporate Advisory (Pty) Ltd
Date: 23-05-2022 12:45:00
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