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Thebe defies challenging times

Aug 24 2009 09:32

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Johannesburg - Despite what it calls a difficult and challenging year, diversified investment holding and investment management company, Thebe Investment Corporation, managed to lift profit after tax from R67m to R225m for the year ended March.

Revenue for the 12 months grew from R730m to R871m, with total assets under management increasing from R2.629bn to 3.R193bn.

The return on average equity improved from 8% to 25%.

"For the Thebe Group, the year ending 31 March 2009 was as difficult and challenging as the economic environment in which its companies operated. While the financial results of the group show an overall improvement upon the previous year's results, this occurred unevenly across the portfolio.

"However, the common thread across the Group has been growth; either growth in profitability; growth in market share; growth operating capacity; or growth in strategic vision.

"We believe that this investment in growth will stand the group in good stead when the economic environment improves," the company said.

Established in 1992 as the wholly owned investment of Batho Batho Trust, with a seed capital of R100 000, Thebe has developed a portfolio of 42 investments, ranging from wholly- owned subsidiaries to non-controlled investments. The portfolio includes businesses started by Thebe as greenfield ventures, as well as businesses acquired either at an early stage of their development or as mature businesses. Some investments are listed on the JSE, while most are privately held.

While Batho Batho Trust is still a controlling party with a 52% shareholding, Sanlam, Absa Capital and Umhlomulo (a company representing staff) have become shareholders. Batho Batho Trust has funded numerous programmes, projects and organisations in South Africa and other SADC countries that are in line with its own charter.

Thebe last released financial results in 2007.

Hitherto, it was the company's policy to announce results only every five years, but it has now decided to henceforth release results annually.

- I-Net Bridge

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