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Johannesburg - Hosken Consolidated Investments [JSE:HCI] on
Thursday announced a 35.5% increase in earnings before interest, taxes,
depreciation and amortisation to R1.27bn for the year ending in March.
Revenue increased by 18.6% to R6.38bn from R5.45bn, while
operating profit rose 44% to R958.3m, from R663.97m in 2010.
Headline earnings moved 96% higher to 580.29 cents.
Hosken has investments in gaming hotels and leisure, media
and broadcasting, transport, energy, industrial, and services and technology.
It declared an ordinary dividend of 60c/share.
"The 2011 financial year has been a good year for HCI
in several ways. Its headline profits are up on last year by 97%. This was
achieved by the group's major contributors (Tsogo and Sabido) improving their
contribution to group headline profits on last year by 10.8% and several
investments turning in really excellent performances," it said.
Hosken purchased a 34.9% stake in wine and brandy producer
KWV and, subsequent to year-end, obtained permission from the competition
authorities to take control of the company.
"The business has not been performing well and we hope
our entry into its shareholding will result in it developing a stronger vision
of its participation in the liquor industry going forward. We believe it is in
any event a good base for HCI to grow into that industry and are very excited
at the prospect of facilitating this."
Hosken has also started a new investment holding subsidiary
in Australia after three former employees emigrated there, it said.
During the year, Tsogo concluded its reverse takeover of
Gold Reef Resorts [JSE:GDF]. This resulted in HCI's share in a major subsidiary being
diluted to 41.3% and, "while we remain very active in the company, we in
consequence no longer consolidate the results", it said.
Looking ahead, the group said its overall financial position
remained strong, with the major businesses still generating strong cash flows.
