The SABVEST Capital (Sabcap) share price jumped more than 5% on the JSE yesterday morning after the investment group said it expected its half-yearly profits for the six months to end. June increase by more than 100%, boosted by investor companies that trade at or ahead of pre-Covid-19 levels.
Sabvest has interests in nine unlisted investments, including Apex Partners, Classic Food Brands and Masimong Group Holdings, and direct and indirect interests in six listed investments, including Transaction Capital, Metrofile Holdings and Corero Network Security plc.
The group also has an offshore bond portfolio.
The group said in a statement that it expected its earnings per share (Heps) and earnings per share (Eps) to be at least 600 cents per share, which is more than a 100% increase. compared to the past six months. from June of last year.
Last year the group reported an overall loss of 387.4c and a loss per share of 387.5c.
Heps and Eps were likely to be higher than those reported for the six months to end-June 2019 by 125.7c, which was before the impact of Covid-19.
“Shareholders are advised that all companies owned by Sabcap are trading at or ahead of pre-Covid-19 levels and ahead of 2020 levels and, in many cases, are achieving satisfactory growth at those levels.
“As a result, Sabcap anticipates improved results for the six-month period ending June 2021, despite the effect of the stronger rand in 2021 on the valuations of Sabcap’s foreign assets,” the group said.
The share price peaked at R49.99 per share following the release of the positive trading update, up from Wednesday’s closing price of R47.56. The action closed at 49.49 rand.
Sabcap also expected to declare a dividend per share of at least 20 cents per share, which was a 100% increase from the 10 cents per share previously reported, but was 44% lower than the 36 cents declared for the six months to the end of June 2019, while it was still known as Sabvest Limited.
Its net asset value (NAV) would be at least 8,000c per share, i.e. an increase of 7.5% compared to the NAV of 7,444c published at the end of December 2020 and an increase of 20.8% compared to the NAV of 6,624c published in June of last year.
The group said its net debt / assets will be less than 5%.
“Sabcap has made some changes to its portfolio which have resulted in an even more conservative balance sheet and increased funding potential for new investments, buyouts and dividends,” the group said.
The group expects to issue a new trade statement with specific ranges towards the end of August, and it expects to release its half-year results in mid-September.