GPI shows resilience

Johannesburg - Black empowered investment company Grand Parade Investments on Monday reported an 8% rise in headline earnings to R48.9m for the six months ended December 2008.

However, headline earnings per share declined by 16% to 10.54c as a result of additional shares issued.

In keeping with GPI's strategy, dividends will only be considered at year end.

During the review period, GPI increased its interest in the highly lucrative urban casinos Sibaya and SunWest and also expanded its footprint in the increasingly profitable limited payout machine (LPM) industry through its increased stake in Thuo KZN.

According to chairperson Hassen Adams: "While the nature of GPI's shareholdings means that it is not immune to the global economic slowdown, the company's overall performance demonstrated very pleasing levels of resilience. Not only has our net asset value increased, but we have also acquired lucrative new opportunities in the gambling industry."

GPI's chief executive, Adrian Funkey added "GPI will continue to focus on bedding down its assets and leveraging the best possible value from them, and more importantly, in the midst of these increasingly uncertain times, take a medium to long term view in expanding GPI's portfolio, taking advantage of the numerous strategic investment opportunities now presenting themselves.

"GPI is in a unique position to cherry pick these investment opportunities in this distressed economic market. We are also hopeful that positive events such as the 2010 Soccer World Cup will bode well for our investments in the hotel and leisure sector."

The group said the strategy going forward is to invest in companies and ventures where GPI can hold sufficient influence.

"In this depressed market in particular, we will also continue to look for strong cash generative investments, and consider green field developments in which to invest where appropriate. Our empowerment ownership remains one of our key strengths," Funkey concluded.

- I-Net Bridge