ZEDER’S Investments share price rallied 9 percent in intraday trade yesterday after the market cheered the firm’s awarding of a 362.5 percent hike on its special dividend to shareholders as it posted its annual results.
A special dividend per share of 92.5c per share declared on April 12, increased by 362.5 percent from the prior year’s 20 cents per share.
By 2.23pm the share price leapt 9 percent to R3.07, having risen 33.81 percent in a year.
Anthony Clark, an independent analyst at Small Talk Daily, commented on Twitter (@smalltalkdaily) ,“New 52-week high in $JSEZED Zeder Investments to R3.01 +7.12%. This was on the cards for weeks as the special dividend was a pretty much given (92.5cps) NOW market acts so 'surprised' at the news & rallies hard.”
Johann le Roux, the chief executive of Zeder, said in the company’s presentation that the company’s focus remained on maximising shareholder wealth.
He said favourable agri conditions had been good for the portfolio, which had shown growth over the past few years.
"We are focusing on cash flow generation within our portfolio and as and when we sold assets there have been special dividends to shareholders,“ Le Roux said.
Zeder said the Kaap Agri unbundling, The Logistics Group disposal and prior year corporate transactions had a positive impact on Zeder’s wealth creation for shareholders.
Zeder’s investment portfolio in the year ended February 2022 was slimmer in the wake of the firm’s unbundling of its Kaap Agri shareholding on April 4.
As an investor in agribusiness and related industries, with a focus on the food and beverage sectors, its investment portfolio was valued at R6.7 billion as per the sum-of-the-parts valuation (Sotp) down 6.7 percent from R7.2bn the prior year.
At the close of business on April 4, 2022, the (Sotp) value per share - its benchmark measurement calculated using the quoted market prices for all JSE-listed investments and valuations performed for unlisted investments - was R3.62 compared to the R4.66 a share on February 28, 2022, also lower as a result of the unbundling.
At February 28, 2022, the net asset value per share was 466.1 cents, an increase of 7.6 percent from the prior year, mainly as a result of the increased valuations of The Logistics Group and Kaap Agri, countered by the payment of the 20 cents per share special dividend on May 10, 2021 out of cash reserves, Zeder said.
Capespan reported recurring headline earnings of R54m, a decrease of 29 percent from the prior year, with difficulties in the supply chain, with increased shipping rates and the unreliable availability of containers hampering operations.
Zaad, a strategic holding company that invests and operates in the specialised agri-inputs industry, reported recurring headline earnings of R139m, an increase of 23 percent per share.
Agrivision Africa, which owns and operates two large-scale commercial farming operations and a milling business in Zambia, reported recurring headline earnings of $7.2m (R104m), an hike of 226 percent per share.
Of note, Zeder said the macro environment remained relatively constrained during the year largely due to supply chain constraints, while also flagging that the Russia-Ukraine conflict would lead to a hike in certain agri-input and soft commodity prices.
Looking ahead, Zeder anticipated that the constrained trading conditions would continue in the short to medium term with significant inflation pressure on the agribusiness input costs side, especially fertiliser and fuel.
But it said the decent summer rainfall, high soft commodity prices and sufficient water resources in the Western Cape were promising for agricultural activities.
BUSINESS REPORT