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TRADEHOLD LIMITED - Unaudited Condensed Consolidated Interim Results and Cash Dividend Declaration for the Six months to 31 August 2021

Release Date: 15/11/2021 13:30
Code(s): TDH TDHBP     PDF:  
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Unaudited Condensed Consolidated Interim Results and Cash Dividend Declaration for the Six months to 31 August 2021

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")




-  Total assets: £825 million(28 February 2021: £808 million)

-  Revenue: £39.6 million (31 August 2020: £34.5 million)

-  Ordinary shareholders' equity: £232.2 million (28 February 2021:

   £225.2 million)

-  Net profit: £4.9 million (31 August 2020: loss £8.7 million)

-  Headline earnings per share: 2.6 pence (31 August 2020: 0.5 pence)

-  Tangible net asset value per share: 98 pence/R19.67 (28 February 2021:

   94 pence/R19.75)

-  Interim dividend: 30 cents per ordinary share (24 May 2021: 30 cents).

-  Collins Group reported a net operating profit before tax of 

   R187.1 million, R27.5 million above budget. It succeeded in collecting

   99% of all rentals and arrears despite the KwaZulu-Natal unrest.

-  Moorgarth achieved a net profit of £1.9 million against a net loss

   of £12.4 million at 31 August 2020. 

-  Boutique increased the occupancy level of its flexible office

   accommodation from 67% at year-end to 85%, while boosting the number

   of its workstations in Greater London to more than 5 100.

Tradehold Group

Tradehold's net assets are split across the United Kingdom in pound sterling 

(39.5%), United States dollar assets in Africa (8.2%), and the balance in 

South African rand (52.3%). In South Africa it owns 74.3% of the Collins 

Property Group. In the UK it holds 100% of the Moorgarth Property Group, 

including a 90% stake in Boutique (previously known as The Boutique 

Workplace Company), a provider of flexible office accommodation in Greater 


Collins Group

The unrest in KwaZulu-Natal has again underlined the necessity of 

diversifying the company's property portfolio, not only in terms of asset 

class but also in terms of geographical spread. A start was made in this 

direction with Collins' Austrian acquisition at the end of the 2021 

financial year. Further diversification is being pursued by management. 

As part of this rebalancing process, Collins Group has continued to dispose 

of mainly smaller, non-core properties. 

A total of 21 smaller properties in the portfolio were impacted by the riots 

in July. Fortunately, none of the company's large industrial parks and 

distribution centres which constitute the bulk of the portfolio, saw any 

damage or looting, thanks to hands-on management and the deployment of 

specialised security.

Despite this major upheaval, the group delivered an operating profit before 

tax of R187.1 million, by collecting 99% of all rentals and arrears. This 

was R27.5 million above budget. 

The company's ability to weather the vicissitudes brought on by the pandemic 

is largely due to the long-term contracts - still with a weighted average 

expiry date of more than six years - with some of South Africa's major 

companies and conglomerates. 


The UK market opened fully in June when all restrictions on leisure 

activities were lifted. This resulted in a significant increase in footfall 

in shopping centres and consequently in much improved trading performances 

by certain of the company's retail and leisure tenants. 

Moorgarth managed to increase rent recoveries to over 90%, substantially 

above the market average. Consequently, Moorgarth could meet all its 

operating costs and all external debt requirements from operating income.

With shopping centres having shown themselves vulnerable to changes in 

global retail trends as well as anti-Covid restrictions imposed by 

government, Moorgarth has continued reducing its exposure to retail, now 

constituting 37% by value of the total portfolio. The balance comprises 

mostly commercial properties some which have been bought and equipped for 


Negotiations to sell the group's major co-owned shopping centre in Reading 

near London is ongoing, with strong interest being shown from several 

quarters. A deal is expected to be concluded in the second half of the year.

Moorgarth achieved a net profit of £1.9 million against a net loss of 

£12.4 million at 31 August 2020. 


Boutique provides flexible office accommodation in 29 buildings in Greater 

London. Together they offer some 5 100 individual workstations in a modern 

environment adapted to the needs of individual clients.

Boutique started the new financial year with an occupancy rate of 67% 

compared to 92% at the start of the pandemic. Thanks to intensive sales 

activity, occupancy has recovered to 85%. Management now expects the 

business to be trading profitably on a monthly basis by the end of the 

financial year.

The increase in the number of lettings was also boosted by a steadily 

recovering market which is marked by a substantial change in how tenants are 

using space in the light of the new work-from-home culture. This coincides 

with a recent Property Week survey in which 80% of those questioned said 

face-to-face interaction with colleagues was the most important reason for 

returning to the office. 

In the period under review the company remained cash positive as it has 

throughout the pandemic, and it was able to meet all debt obligations 

without any additional borrowing. 


The major markets in which Tradehold operates still face considerable 

uncertainty. In recent weeks the UK has been plagued by shortages of crucial 

commodities and interruptions in the supply chain, while in South Africa the 

economy is still staggering under the loss suffered during the July riots. 

The UK's economy is showing the strongest recovery of all the G7 nations 

while the IMF recently increased its growth projection for South Africa's 

economy to 5% for the year. In addition, all three of the group's major 

businesses are solid, well-established entities with experienced and highly 

adaptable management who have learnt over time how to operate successfully 

under the remaining Covid-restrictions.

We believe Boutique in particular finds itself in an excellent position to 

benefit from changing work cultures. 


The board of directors of Tradehold (the "Board") resolved to declare a 

gross cash dividend of 30 cents per ordinary share on 15 November 2021 - 

Tradehold's second interim dividend to date. The income used for this 

purpose is Tradehold's share of the dividend Collins Group declares every 

six months in terms of the agreement with its minority shareholders, as well 

as operating cash generated by its United Kingdom and Mozambique operations. 

The dividend will reduce Tradehold's stated capital.

The distribution constitutes a foreign dividend as defined in section 1 of 

the South African 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 in the case of those 

shareholders who are not exempt from it. They 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, 15 November 2021

Last date to trade cum dividend                    Tuesday, 30 November 2021

Date trading commences ex dividend                Wednesday, 1 December 2021

Record date                                          Friday, 3 December 2021

Date of payment to shareholders                      Monday, 6 December 2021

Share certificates may not be dematerialised or rematerialised between 

Wednesday, 1 December 2021, and Friday, 3 December 2021, both days included. 

HRW Troskie               KL Nordier

Acting Chairman           Director


15 November 2021


The contents of this announcement is the responsibility of the directors of 

Tradehold. The announcement is only a summary of the information contained 

in the complete unaudited condensed consolidated interim results for the six 

months ended 31 August 2021 ("Full Announcement"). Any investment decisions 

by investors and shareholders should be based on consideration of the 

Full Announcement published on SENS on Monday, 15 November 2021, and which 

is available at the following link: 

and on Tradehold's website at 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.


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: 15-11-2021 01:30:00
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