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DURBAN – Alternative Exchange (AltX) listed company Mettle Investments released its first set of results after it was unbundled from Tradehold in May, boosted by its investment in Reward, which contributed the most of the group's profits for the six months to end August. 

Mettle listed on the JSE with a capital of R545.8 million. 

Mettle Investments owns 90 percent of Reward, which is based in Leeds in the UK, and Reward owns 75 percent of Reward Finance Group, which has three operating companies, Reward Capital, Reward Invoice Finance and Reward Trade Finance. Reward’s strategy is to target SMEs that are not adequately serviced by traditional banks.

Reward provides asset secured short and medium-term loans and invoice discounting to the UK small and medium-sized enterprises market.

Reward has made instant contribution in this period, adding R60.8m to the group’s revenue and R12.96 to profit. 

The group said Reward been consolidated for the full six-month period, the profit attributable to shareholders would have increased by an additional £0.5m. “In addition, the results of Reward have only been consolidated into Mettle for three and a half months,” the group said.

The group said its results for the period under review contained several once-off items that will not recur in future periods.

In the group’s results, revenue during the period increased to R84.1m, up from R20.5m, while earnings per share decreased by 16.6 percent to 5.08 cents a share, down from 6.09c. 

Headline earnings per share declined by 19.3 percent to 4.65c.

BUSINESS REPORT