To view the PDF file, sign up for a MySharenet subscription.

TRADEHOLD LIMITED - Audited Summary Consolidated Financial Statements of Tradehold Group and Cash Dividend for year to 28 February 2021

Release Date: 24/05/2021 14:50
Code(s): TDH TDHBP     PDF:  
Wrap Text
Audited Summary Consolidated Financial Statements of Tradehold Group and Cash Dividend for year to 28 February 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")


AUDITED SUMMARY CONSOLIDATED FINANCIAL STATEMENTS OF THE TRADEHOLD GROUP AND 
CASH DIVIDEND DECLARATION FOR THE YEAR TO 28 FEBRUARY 2021 


KEY INFORMATION

-  Total assets: £808 million (2020: £883 million)

-  Headline loss per share: 1.9 pence (2020: earnings 9.5 pence)

-  Revenue: £74.3 million (2020: £94.6 million)

-  Ordinary shareholders' equity: £225.2 million (2020: £282.7 million)

-  Net loss attributable to ordinary shareholders: £39.7 million 

   (2020: net profit £5.99 million)

-  Tangible net asset value per share: 94 pence / R19.75 

   (2020: 120 pence / R24.05)

-  Final dividend: 30 cents per ordinary share declared



Although the group reported a net loss of £39.7 million, £44.5 million of 

this is due to non-cash investment property devaluations resulting from the 

Covid-19 pandemic, of which £33 million relates to its United Kingdom 

properties. A further non-cash loss of £10.7m was incurred, which is not 

Covid related and comprises a once-off breakage costs on Collins fixed rate 

hedge unwinds, part of a debt restructure which has contributed to a 

reduction in interest cost from an average of 11.3% to 8.4% (approximately 

R80 million saving per year). Tradehold ended the year with an improved cash 

position of £25.4 million and declared a final dividend of 30 cents per 

ordinary share (60 cents in total for the year). 



At Tradehold we apply three essential principles in our business. These are 

to adapt, simplify and focus. It is this premise that has allowed us to 

weather the effects of the pandemic and the impact of a vastly accelerated 

change in market trends. 



ADAPT

The South African business (Collins Group) has been particularly successful 

in managing change with agility and flexibility. The business collected 97% 

of all rent due (including remissions of R30 million), vacancies have 

remained low, at a mere 2.3% of all gross lettable space, with a 6.5 year 

weighted average lease expiry profile. We could thus exceed our pre-Covid 

budget for the year, achieving net operating profit before tax of 

R297 million (before one-off items). We made our first offshore investment, 

acquiring six retail warehouse properties in Austria for €33.2 million. Each 

of these is underpinned by a 10-year lease signed by OBI, Europe's largest 

DIY retailer. These properties were bought at a 7% net operating income 

yield. 



In the UK, management has long recognised a growing appetite for flexible, 

fully equipped office space offered on a more accommodating basis and on 

shorter lease terms. This led to the establishment of Boutique, with its 

present 4 830 workstations spread across 32 buildings in Greater London. 

Based on the negotiation of new deals since year-end and the ongoing high 

level of interest, we believe the business is well-poised to capitalise on 

the new, hybridised nature of workspace sought by employers and their 

employees. In particular, this has been the case for businesses that require 

a physical presence in the major cities while accommodating fewer employees. 

Notable is that March 2021 was the best month in Boutique's history with 

529 workstations sold. 



Shifting the thrust of the UK property business away from traditional retail 

has been an ongoing process. Traditional retail now accounts for 37% of the 

total property value in the UK. Adapting this way has helped the business to 

collect, under very challenging circumstances, on average 78% of total rent 

due (before rent concessions) over the full financial year. We regard this 

as most satisfactory in the prevailing climate. The medium- to long-term 

strategy for the UK property business is to adapt from a capital growth 

strategy to one that is less capital-intensive with the capacity to 

contribute to Tradehold's future dividends to shareholders. 



SIMPLIFY

We are simplifying the group's structure, inter alia by reducing the number 

of countries in Africa where Tradehold operates. This allows us to focus all 

our attention on our primary businesses: the Collins Group, Moorgarth and 

Boutique. It is against this background that we have sold one of the last 

three properties in Mozambique and are in negotiations to sell the remaining 

two.



FOCUS

For the Collins Group the accent remains on building a premium industrial-

based property portfolio, primarily by selling non-core assets and 

re-investing in better quality properties in South Africa, as well as 

off-shore. Seven none-core assets sold for R227 million, were transferred in 

the year at a loss to book value of only R1.3 million while another nine are 

in the process of being transferred to their new owners. 



Tradehold is also constantly looking at ways to reduce the cost of debt to 

increase profitability. We were able to reduce average cost of debt from 

11.3% to 8.4%, with 75% of that debt still fixed. This was achieved by 

breaking long-dates fixes in March last year when the long bond ran, and 

unwinding an inflation-linked hedge and using the proceeds from that gain 

(R228 million) to break and refix R1.5 billion of debt. The overall debt 

restructuring was achieved at a total cash cost of just R8 million, with an 

interest saving of approximately R80 million per annum. 



In the UK, the focus has been on growing the Boutique business by taking 

advantage of the unique opportunities arising as a result of the pandemic. 

For Moorgarth, which incurred significant fair-value impairments to the UK 

portfolio, the accent now is on protecting capital invested through active 

asset management and by actively following through on our medium- to long-

term strategy of reducing exposure to traditional retail. A further 

important focus on cost and cashflow management, as well as on the 

maintenance of excellent banking relationships have ensured that the UK 

business has sufficient liquidity for the foreseeable future. 



ORDINARY SHARE CASH DIVIDEND

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

gross cash dividend of 30 cents per ordinary share on 24 May 2021. 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. 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 will be as follows:

Declaration date                                      Monday, 24 May 2021

Last date to trade cum dividend                       Tuesday, 8 June 2021

Date trading commences ex dividend                    Wednesday, 9 June 2021

Record date                                           Friday, 11 June 2021

Date of payment to shareholders                       Monday, 14 June 2021



Share certificates may not be dematerialised or rematerialised between 

Wednesday, 9 June 2021, and Friday, 11 June 2021, both days inclusive.



CH Wiese            KL Nordier

Chairman            Director



24 May 2021



FULL ANNOUNCEMENT

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

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

in the complete audited summary consolidated financial statements for the 

year to 28 February 2021 ("Full Announcement") released on SENS. Any 

investment decisions by investors and shareholders should be based on 

consideration of the Full Announcement which is available at the following 

link: https://senspdf.jse.co.za/documents/2021/jse/isse/tdh/YE2021.pdf and 

on Tradehold's website at http://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 36 Stellenberg Road, Parow Industria 

or Tradehold's company secretary at tdhcosec@leacorporateservices.co.za, or 

from the offices of its sponsor, Questco Corporate Advisory Proprietary 

Limited, 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, DA Harrop, KL Nordier

Non-executive directors: CH Wiese (alternate JD Wiese), HRW Troskie, 

MJ Roberts, LL Porter, KR Collins, 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



Resignation of director and changes to Board

In compliance with paragraph 3.59 of the Listings Requirements of the JSE 

Limited, Tradehold shareholders are advised that Mr David Anthony Harrop has 

resigned from the Board with effect from 20 May 2021.



The following changes to the Tradehold board occurred during the financial 

year:

Mr Paul Johannes Roelofse was appointed as an independent non-executive 

director to the Board with effect from 10 November 2020.


Date: 24-05-2021 02:50:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story