Sabvest Capital (Sabcap), a mid-cap investment holding company, with the Seabrooke Family Trust as its major shareholder, yesterday announced robust interims as it rocked a 50 increase in its dividend payout.
Its investee firms include DNI-4PL Contracts, ITL Holdings Group, SA Bias Industries and ARB Holdings, among others.
For the six months to June it reported that its net asset value (NAV) per share had risen 26.1 percent to R103.88 per share in the reporting period from R82.40 the prior corresponding period. Its NAV rose 10.9 percent compared to December 2021.
Anthony Clark, an independent analyst at Small Talk Daily @smalltakdaily, said, “I had forecast YE2022 NAV target of 11 000 cps (cents per share) set months ago; this shoots that NAV out of the park.”
Sabcap explained that its primary financial metric was growth in NAV per share.
This was measured annually and growth rates over different periods are included in the year-end results.
“The 15-year compounded annual growth rate in NAV per share to the 2021 year-end was 16.9 percent, calculated without re-investing dividends. The compounded annual growth rate in NAV per share over 15 years with dividends reinvested was 18.6 percent. The 15-year compound annual growth rate in the share price was 16 percent, ” it said.
Sabcap said all of its investee companies were now trading at or better than 2019 pre-Covid levels.
It declared an interim dividend of 30 cents per ordinary share for the six months ended June 30 2022, up 50 percent, from 20c the prior corresponding reporting period, out of income reserves.
Headline earnings per share and earnings per share increased to 1 001.3 and 1 001.1 cents per share respectively, each being an increase of 26.2 percent increase over the prior comparative period.
“The favourable results were largely due to strong fair value gains in Apex, DNI, ITL, Masimong and Rolfes, the benefits of conservative debt levels and the strong dollar enhancing the rand translated value of the group’s dollar investments. However, the values of the listed investments reduced in line with the fall in markets worldwide,” it said.
Looking ahead, Sabcap said it was comfortable with the current performance and future prospects of its investees and in particular of the new investments concluded during the period.
“Accordingly, Sabcap expects continued satisfactory growth for the remainder of the 2022 financial year,” it said.
Sabcap’s shares were flat in intraday trade yesterday but have risen 22.63 percent in the year to date.
BUSINESS REPORT