Considering the need to build capital, the dividend is somewhat surprising - although the bigger payout to shareholders came on the back of a more than 60% increase in recurring earnings to R149m.
The recurring earnings stem mainly from its equity accounted investments like liquor group KWV Limited and Kaap Agri (the largest shareholder in JSE-listed Pioneer Foods).
Zeder revenues were also helped by the profitable sale of 2.3m shares in Pioneer Foods, which the company secured by underwriting a rights offer for the Swartland food giant last year.
Last month Zeder proposed a R500m rights offer to raise cash for investment opportunities - including increasing the company's stake in unlisted KWV Limited to just under 35%.
The terms of the rights offer will see shareholders offered 60 new shares at 135c/share for every 100 Zeder shares held.
Zeder's results showed an increase of 9% in its net asset value to 282c/share. But the NAV based on the prices of its mainly unlisted investments - which traditionally trade at sizeable discounts to their intrinsic value - was reflected as a markedly lower 192c/share.
Zeder - which paid a management fee of R35.6m and performance fees of R20m to PSG in the year to end February - stressed that the book value of its investments was tested for potential impairment at each reporting period.
"Zeder has tested for potential impairment at year end and the directors are satisfied that Zeder's investments in associated companies are fairly stated."
* The writer holds shares in Zeder.
- Fin24.com