Trematon Capital Investments has reduced its dependence on the fortunes of its largest asset, Intec Telecoms, and is looking at opportunities to reduce it even further.
A year ago, Trematon was 100% dependent on London-listed Intec Telecom as the sole determinant of its performance. The group is now only 50% dependent on that company.
Intec Telecom, which remains a material part of Trematon`s net asset value (NAV), declined in value in the six months to February because of a fall in its share price and a strengthening of the rand against the British pound.
Despite this, Trematon`s NAV per share was 61.46c at the end of the period, up from 59.5c a year before and 57.2c at the end of August.
"The decline in the value of Intec was more than offset by realised and unrealised gains in the value of local listed investments," says Trematon CEO Arnold Shapiro.
He adds that the loan due from Mican was repaid and Trematon has no borrowings and has cash on hand of R28 million, with a further R85 million invested in unencumbered marketable assets. The board is also considering an additional R30 million borrowing facility.
"Trematon also holds shares in a number of unlisted investments and is investigating opportunities in this area. This component of NAV is not yet very significant, but it may become larger during 2006 if suitable opportunities arise."
Shapiro adds that as the company`s main assets are listed and not highly diversified, NAV may be volatile in the short term. Management is focusing on increasing NAV per share over the long term.
Trematon`s revenue for the period rose to R13.34 million from R0.98 million a year before. Pre-tax profit of R16.68 million compares with R7.56 million previously, while earnings slipped from 7.19c per share to 6.92c per share.
Headline earnings per share of 2.48c compare with 7.19c previously.
The Trematon share closed 7c or 5.6% down at 119c on the JSE yesterday.
Share