Johannesburg - Brait’s net asset value per share had grown 76.7 percent in the year to March as it boosted acquisitions, the investment holdings firm reported yesterday.
The share price fell 3.15 percent yesterday to R151.50.
The company boosted net asset value per share to R136.27 a share, up from R77.12 a share in the prior period. However, the profit for the year was down to R22.2bn from R23.3bn, with headline earnings per share at R42.94 from R45.27 in the prior period.
Ron Klipin, a portfolio manager at Cratos Capital, said: “Its growth has been exponential… over the past year due to a deluge of deal flow. Consistent performance over five years resulted in gains of R52.5bn.
“Success has been achieved, with major wins in investments made. I am still confident of good growth in 2017 with superb rand-hedge qualities.”
Brait declared a dividend of 136.27c, with a scrip alternative for shareholders who want more shares instead of cash.
Brait, which has billionaire Christo Wiese as its biggest shareholder, increased its exposure to the UK last year.
During this period, Brait acquired New Look and Virgin Active. They invested R32.2bn overall primarily in acquiring 79.9 percent of New Look from two private-equity firms, Permira and Apax Partners.
They also bought 70.4 percent of Virgin Active for about £682 million (R15bn) and increasing the shareholding in Iceland Foods from 19 percent to 57.1 percent.
New Look accounted for R35bn of its R78bn assets under management. Virgin Active accounted for 23 percent, Premier 15 percent and Iceland Foods 9 percent of total assets.
New Look, which has 838 stores, up from 809 last year, has key markets in China, France, Poland and Germany. The fashion store was a star performer as it reported a 12.1 percent growth in earnings before interest, tax, depreciation and amortisation to £227m.
Yesterday Sky News reported that Virgin Active, which has 276 clubs in 10 countries, across 4 continents, was selling 35 UK gyms as it moved further to fund its expansion into luxury fitness clubs to rival Nuffield Health. The amount for this sale was not disclosed.
Nuffield, a not-for-profit health-care organisation said the deal would take its UK fitness portfolio to 112 sites – double that of Virgin.
“Both these assets have produced solid results… and are performing in accordance with the original investment plan,” the group said about New Look and Virgin Active.
Locally Brait also owns a 91.1 percent controlling stake in Premier, which includes brands such as Snowflake, Iwisa No1 and Blue Ribbon bread.
BUSINESS REPORT