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Salient features extracted from summarised AFS for the year ended 31/12/2023 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 SUMMARISED ANNUAL FINANCIAL
STATEMENTS for the year ended 31 December 2023
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
40,8% through its holding in the listed ordinary shares. During
2023, the Company repurchased and cancelled 330 000 ordinary
shares previously held by its subsidiary, Sabvest Finance and
Guarantee Corporation (Pty) Ltd. Accordingly, the number of shares
in issue at year-end, was 39 220 000 ordinary shares (31 Dec 2022:
39 400 000 net of treasury shares).
Sabcap has 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.
RESTATEMENT
During the current year, the Company's subsidiaries have been
reclassified as investment entities under IFRS 10 and the
financial statements have been restated to cease consolidating the
subsidiaries. The Company's investment in Sabvest (Pty) Ltd
("Sabvest") has since been measured at Fair Value Through Profit
and Loss ("FVTPL") as opposed to the historical measurement at
cost less accumulated impairment loss. Similarly, Sabvest's
investments in Sabvest Finance and Guarantee Corporation (Pty) Ltd
and Sabvest Investments (Pty) Ltd have been measured on the same
basis. The restated net asset value ("NAV") is the same as the NAV
of the previously consolidated group for the comparative periods,
as the fair value of the investment entities remain unchanged.
Pursuant to Sabcap accounting as an investment entity, the layouts
of the Company's statement of financial position, statement of
comprehensive income and statement of cash flows were aligned to
the disclosure requirements for investment entities under IFRS 10
and to the format presented by other investment entities. This
results in fair value accounting now being reflected in the
Company financial statements in the investments line as opposed to
the previously presented consolidated statements that had some
assets and liabilities separately disclosed.
RESULTS
%
change 2023 2022
Net asset value per share – cents (0,7) 10 936 11 017
(Loss)/earnings and headline
(loss)/earnings per
share – cents * (100,6) (11,0) 1 721,7
Dividends per share – cents – 90 90
Total comprehensive
(loss)/income – R'm (100,6) (4,3) 679,6
Shareholders' funds – R'm (1,2) 4 289,3 4 340,9
* 2022 restated to align with the disclosure requirements for
investment entities under IFRS 10 Consolidated Financial
Statements (refer to annual financial statements).
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
2023 year-end was 17,2%, calculated without reinvesting dividends.
The CAGR after reinvesting dividends was 18,5% (calculated with
dividends notionally not paid and the amounts notionally retained
by the Company, growing at 10% per annum).
The growth in share price itself over different periods is set out
in the table below. The growth rate over one year was (7,9%) and
the CAGR over 15 years was 18,0%.
Percentage Compound Growth
1 year 3 years 5 years
Cents % % %
NAV per share 10 936 (0,7) 13,7 13,3
Market price per share * 7 700 (7,9) 37,3 12,3
GROWTH METRICS (continued)
Percentage Compound Growth
10 years 15 years
% %
NAV per share 16,6 17,2
Market price per share * 14,6 18,0
* 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.
RESULTS SUMMARY
High inflation, logistical challenges, high raw material prices
and higher interest rates continued to provide a challenging
environment for the group's investees to operate in. Apex, ARB,
Masimong, SA Bias and Sunspray performed well. Results at Corero,
DNI, Flexo, Metrofile, Rolfes and Valemount were satisfactory.
Halewood's results were weak in difficult trading conditions in
RSA. ITL's results were much poorer than expected due to soft
northern hemisphere retail demand, product mix and margin changes
from trading down and destocking, and sourcing moving to higher
cost locations due to geo-political pressures. The market value of
the shares held in TC fell considerably after incurring
substantial losses in SA Taxi due to materially higher provisions
required and a complete restructure of its business model
initiated. Altify and Versofy as start-ups are carried at zero.
Classic Food Brands was sold at nominal value.
These conditions have resulted in a slight decrease in NAV per
share to 10 936 cents per share, being a 0,7% decrease from NAV
per share of 11 017 at the 2022 year-end reporting date. Although
a small decrease, it is the first reduction in NAV per share in a
single reporting period for over twenty years. Notwithstanding,
the growth metrics table shows the growth rates over periods from
3 to 15 years being 13,7% at 3 years to 17,2 % to 15 years
compounded, and 18,5% with dividends reinvested.
Final DPS was maintained at 60 cents per share, resulting in the
interim and final dividends totalling 90 cents per share,
remaining constant with the prior year. Share buybacks were R11,8m
during the period (31 Dec 2022: R9,5m).
INVESTMENT HOLDINGS
as at 31 December 2023
The Company's investment holdings includes the fair value of the
its investment in Sabvest (Pty) Ltd and comprises mainly of the
fair value of the investments, assets and liabilities held by the
underlying subsidiaries, summarised as follows:
Number
of
Listed/ ordinary
Unlisted Sector *1 shares/units
INVESTMENTS
Altify (previously Revix UK) U FT
Apex Partners Holdings
(Pty) Ltd U IS
ARB Holdings (Pty) Ltd U IS
Corero Network Security Plc L FT 51 000 000
DNI-4PL Contracts (Pty) Ltd U FT
Flexo Line Products (Pty) Ltd U IS
Halewood International
South Africa (Pty) Ltd U IS
ITL Holdings Group U IS
Masimong Group Holdings
(Pty) Ltd U MCA
Metrofile Holdings Limited L IS 57 000 000
Rolfes Holdings (Pty) Ltd U MCA
SA Bias Industries (Pty) Ltd U IS
Sunspray Food Ingredients
(Pty) Ltd *3 U IS
Transaction Capital Limited L FT 6 000 000
Valemount Trading (Pty) Ltd U IS
Versofy (Pty) Ltd U IS
INVESTMENTS (continued)
Economic Fair
Interest *2 value
% R'000
Altify (previously Revix UK) 16,1 –
Apex Partners Holdings (Pty) Ltd 45,3 584 590
ARB Holdings (Pty) Ltd 18,5 357 357
Corero Network Security Plc 10,0 99 039
DNI-4PL Contracts (Pty) Ltd 19,7 990 446
Flexo Line Products (Pty) Ltd 47,5 30 526
Halewood International South Africa
(Pty) Ltd 19,0 91 637
ITL Holdings Group 34,4 499 147
Masimong Group Holdings (Pty) Ltd 9,0 475 805
Metrofile Holdings Limited 13,5 171 000
Rolfes Holdings (Pty) Ltd 24,7 160 770
SA Bias Industries (Pty) Ltd 85,2 1 269 671
Sunspray Food Ingredients (Pty) Ltd *3 27,7 138 189
Transaction Capital Limited 0,8 47 880
Valemount Trading (Pty) Ltd 39,3 55 512
Versofy (Pty) Ltd 3,8 –
Interest-bearing borrowings (613 606)
Deferred tax liability (147 249)
Cash on hand 41 943
Other net assets 39 069
4 291 726
*1 IS – Industrial and Services; MCA – Mining, Chemicals and
Agriculture; FT – Specialised Financial and Technology.
*2 Represents the economic interest at 31 December 2023.
*3 Includes the 16,6% interest held-for-sale.
PROSPECTS
Sabcap is comfortable with the growth prospects of all its
unlisted long-term investments although the timing of the recovery
at ITL may be longer in the RSA operations than internationally
and at a higher cost. The values of its three listed investments
are determined by their share prices. The trading results of
Corero and Metrofile are expected to be satisfactory but the
timing and extent of recovery at TC remain uncertain although good
progress is being achieved.
Sabcap expects to resume satisfactory growth in NAV per share in
2024.
Management regards Sabcap as fully invested at the present time
but continues to consider acquisitions and investment
opportunities in its investees.
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 (2022: 60
cents) per ordinary share for the year ended 31 December 2023 has
been declared out of income reserves making a total of 90 cents
for the year (2022: 90 cents).
The issued share capital of the Company at the declaration date is
39 220 000 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, 16 April 2024
Trading "EX" dividend commences Wednesday, 17 April 2024
Record date Friday, 19 April 2024
Dividend payment date Monday, 22 April 2024
No dematerialisation or rematerialisation of share certificates
will be allowed during the period Wednesday, 17 April 2024 to
Friday, 19 April 2024, both days inclusive.
Sandton
19 March 2024
This announcement, prepared by the directors, has itself not been
audited, however, the financial information included herein has
been correctly extracted from the audited annual financial
statements (the "results") which have been audited by
PricewaterhouseCoopers.
This announcement is a summary of information in the results and
does not contain full or complete details. Any investment
decisions by investors and/or shareholders should be based on the
results. The results and summarised results, including the audit
opinion of the external auditor, PricewaterhouseCoopers, which
sets out the key audit matters and the basis for its unmodified
opinion, are available on the JSE's cloudlink at
https://senspdf.jse.co.za/documents/2024/JSE/ISSE/SBPE/YEres23.pdf
and published on the Company's website on
http://www.sabvestcapital.com/pdf/2023/YE-results-Dec23.pdf
and http://www.sabvestcapital.com/pdf/2023/AFS-Dec23.pdf
on 19 March 2024.
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: 19-03-2024 04:45:00
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