VenFin, a JSE-listed investment holding firm, has shown a 51.8% increase in net asset value (NAV) per share, from R28.80 to R43.72, in the year to June 2005.
The NAV, based on the market value of listed companies and directors` valuation of unlisted investments, increased by 43.2% to R19.06 billion from R12.95 billion. The 15% stake in Vodacom accounted for 64.5% or R12.28 billion.
VenFin is also carrying out a share repurchase programme, which CEO Dillie Malherbe says had a positive impact on NAV per share, contributing 4.6% of the growth.
Headline earnings increased 13.2% from R740 million to R838 million, largely attributable to Vodacom`s earnings, which contributed a 37.9% increase in equity accounted earnings of R662 million compared with R480 million previously.
The diluted 31.5% interest in e.tv from 33% due to the establishment of a share incentive trust for e.tv staff, contributed R43 million, while the R96 million due to the recognition of a deferred tax asset of R299 million in respect of e.tv`s assessed losses also contributed to the headline earnings.
Headline earnings per share increased 25.4% from 151.4c to 189.8c.
During the financial year, VenFin also disposed of its 25.3 million depositary receipts in Richemont for R524 million, with an after-tax capital surplus of R173 million being realised.
An analyst says while the earnings were in line with expectations, the directors` valuations were slightly higher than expected.
The group is to pay a dividend of 50c per share, which the analyst says is disappointing because the market was expecting a special dividend.
However, the analyst adds that a cautionary notice - in which VenFin says it is in discussions - may have prevented the declaration of a special dividend.
Related story:
VenFin issues update
Share