The current market offers good investment opportunities, says investment holding company VenFin, which this morning released its results for the year to 30 June.
<B>Salient figures</B>
VenFin results for the 12 months to 30 June 2003.
Figures for the 15 months to 30 June 2002 in parentheses:
Revenue: R256m (R274m)
Net interest income: R179m (R156m)
Profit from operations: R139m (R101m)
Profit before tax: R848m (R456m)
Net profit: R593m (R233m)
HEPS: 130.2c (135.7c)
EPS: 116.1c (44.7c)
Current assets: R1.47b (R920m)
Cash and equivalents: R1.41b (R865m)
Current liabilities: R50m (R59m)
Cash generated from operations: -R122m (R141m)
NAV per share (book value): R16.40 (R18.14)
NAV per share (market value and directors` valuation of investments): R24.17 (R27.11)
The group, which focuses on telecoms, technology and media, achieved headline earnings per share (HEPS) of 130.2c, which compare favourably with HEPS of 135.7c for the 15 months to 30 June 2002.
CEO Dillie Malherbe says that based on a comparative 12-month period to 30 June 2002, HEPS would have increased 42.8% from an adjusted 91.2c to 130.2c. A 25c per share dividend was declared.
VenFin`s main sources of earnings were its 15% interest in Vodacom, 33% stake in R&V Holdings and net interest income from cash holdings. The bulk of R&V`s earnings comes from interest generated by the Alexander Forbes and Dimension Data convertible bonds and on cash.
Malherbe says the contribution of net interest income to headline earnings increased by 14.3% from R112 million to R128 million, mainly as a result of a higher average cash balance, as well as high interest rates on local cash.
The group had cash of R1.41 billion at the end of the period, compared with R920 million a year before.
"We continue to evaluate new investment opportunities on a regular basis both inside and outside SA," Malherbe says. "Our investment strategy is to take a long-term view and we believe that the current market offers good opportunities.
"We have changed our focus slightly and are concentrating on larger investments which can make a meaningful contribution to VenFin."
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