Johannesburg - Brait reported a first half-year loss as the South African investment company that owns health-club chain Virgin Active and clothing retailer New Look said a weaker pound against the rand cut into the net asset value of the UK units it bought last year.
The company, whose biggest shareholder is South African billionaire Christo Wiese, posted a R4.5 billion ($318 million) loss for the six months through September compared with a profit of R18.1 billion a year earlier, the San Gwann, Malta-based company said in a statement on Wednesday. Net asset value fell to R105.06 a share from R123.50 a year earlier.
“The UK apparel market continues to be challenging,” Brait said. “The recent macro events have highlighted the importance of increasing the diversity of operations.”
The loss comes as Brait seeks a listing on the London Stock Exchange and is seeking new capital to fund future deals. The company’s most recent investments have focused on the UK, where Brait last year spent a combined 1.6 billion pounds ($2 billion) on Virgin Active, New Look and an increased stake in low-cost supermarket chain Iceland. The pound tumbled after the the UK voted to leave the European Union on June 23.
The stock has declined 44 percent in Johannesburg this year, the worst performer on the FTSE/JSE Top40 Index, and is on track its first annual drop in four years. The shares were up 1.1 percent at R92.50 as of 9.06am in the city.
Brait is in the final stages of concluding a new R8.5 billion facility with lenders with a four-year term to November 2020, the company said.
BLOOMBERG