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Johannesburg - Investment holding group Sabvest [JSE:SBV] on Wednesday reported a 29% increase in headline earnings per share from 118.8 cents to 153c for the year to the end of December 2010.
The group's dividends for the year have been increased by 21% to 17c per share. Intrinsic value per share increased by 12% to 1.230c per share.
Sabvest said the extent of the increase was affected by the strong rand at the financial year-end due to the conversion at these rates of the overseas assets held by the group through SA Bias Industries and Flowmax UK.
Shareholders' funds with investments at intrinsic value (net of notional CGT) increased to R570m.
A four year loan of R35m has been raised to facilitate the group's South African investment programme. An offshore ring-fenced thirteen months notice facility of $2m has been arranged to enable the group to re-open its overseas short-term portfolio which is currently focused on the IT sector.
"It is Sabvest's intention to maintain a moderate level of gearing to enhance investment returns. At the reporting date net interest-bearing debt amounted to 9% of shareholders' equity at intrinsic value," the group stated.
"With regard to the lower dividends received for the year, certain dividends that were previously accounted for in the second half of each year and paid in the first half of the following financial year will now be declared and paid in the first half of the following financial year," Sabvest added.
Operating costs for the year included R2.6m of one-off items arising from special incentives and the winding up of the group's share appreciation rights scheme as explained to shareholders in the circular dated 7 December 2010. All three executive directors are now direct shareholders in the company, the group said.
"With regard to medium-term growth, over a five-year period, headline earnings per share grew by 15.6% p.a., dividends per share by 23.2% p.a. and intrinsic net asset value per share by 20.7% p.a. - all in excess of the group's growth targets."
Sabvest's four unlisted industrial associates performed well with Sabvest's share of their after tax income increasing by 28% to R69m. On a look-through basis and notwithstanding the effects of the strong Rand, the unaudited combined revenue of the four groups for the twelve months was R1.3bn, EBITDA R222m and PBT R182m.
Looking ahead, Sabvest said that all of the group's associates are projecting improved earnings in 2011. "In addition, most of the companies in the group's investment portfolios are also expected to record improved results although the extent to which this will be reflected in share prices or valuations is obviously uncertain.
"As a result we anticipate an improvement in Sabvest's results in the year ahead," the group added.
The group's dividends for the year have been increased by 21% to 17c per share. Intrinsic value per share increased by 12% to 1.230c per share.
Sabvest said the extent of the increase was affected by the strong rand at the financial year-end due to the conversion at these rates of the overseas assets held by the group through SA Bias Industries and Flowmax UK.
Shareholders' funds with investments at intrinsic value (net of notional CGT) increased to R570m.
A four year loan of R35m has been raised to facilitate the group's South African investment programme. An offshore ring-fenced thirteen months notice facility of $2m has been arranged to enable the group to re-open its overseas short-term portfolio which is currently focused on the IT sector.
"It is Sabvest's intention to maintain a moderate level of gearing to enhance investment returns. At the reporting date net interest-bearing debt amounted to 9% of shareholders' equity at intrinsic value," the group stated.
"With regard to the lower dividends received for the year, certain dividends that were previously accounted for in the second half of each year and paid in the first half of the following financial year will now be declared and paid in the first half of the following financial year," Sabvest added.
Operating costs for the year included R2.6m of one-off items arising from special incentives and the winding up of the group's share appreciation rights scheme as explained to shareholders in the circular dated 7 December 2010. All three executive directors are now direct shareholders in the company, the group said.
"With regard to medium-term growth, over a five-year period, headline earnings per share grew by 15.6% p.a., dividends per share by 23.2% p.a. and intrinsic net asset value per share by 20.7% p.a. - all in excess of the group's growth targets."
Sabvest's four unlisted industrial associates performed well with Sabvest's share of their after tax income increasing by 28% to R69m. On a look-through basis and notwithstanding the effects of the strong Rand, the unaudited combined revenue of the four groups for the twelve months was R1.3bn, EBITDA R222m and PBT R182m.
Looking ahead, Sabvest said that all of the group's associates are projecting improved earnings in 2011. "In addition, most of the companies in the group's investment portfolios are also expected to record improved results although the extent to which this will be reflected in share prices or valuations is obviously uncertain.
"As a result we anticipate an improvement in Sabvest's results in the year ahead," the group added.
