JOHANNESBURG - Trematon Capital is eyeing more investments in education and property as it entrenches its tentacles in the sectors.
The company said yesterday that it had identified potential growth in the sectors.
It said it would focus on the Generation education investment, which has four of its six school sites in operation and two under development. The group said it had increased its student population to 833 during the six months to the end of February from 500 students reported in August last year.
“The two largest schools are in Sunningdale and Hermanus. The Sunningdale campus is complete and at full capacity, with a substantial waiting list. The Hermanus campus is still under construction and operating at current capacity. When complete the Hermanus School will be able to accommodate 350 students,” the group said.
Trematon Capital is an investment group that operates principally in South Africa, with most of its investments based in the Western Cape. The portfolio comprises investments, subsidiaries, associates and joint ventures engaged in a variety of industries.
The group said the Generation was developing ancillary businesses in high growth areas of the education market.
Trematon reported a 93percent increase in revenue to R154million - up from R79.8m recorded during the corresponding period last year - largely due to increased rental income in Aria and increased school fee income from the expansion of Generation. The company said the increases reflected the growth of these businesses and increases the annuity income of the group.
Trematon said substantial allocations of cash were invested into new and existing businesses, in Generation Education and Aria Property Group (Aria), which are both based in the Western Cape, and ASK Partners (ASK), based in the UK at the beginning of the 2018 financial year. “The 2018 financial year will be a period of consolidation, with a focus on adding value in all businesses,” the group said.
Despite these investments the group reported a decline of 76percent to R24.8m in net profit after tax during the period. The group explained that in the prior interim period, material realisations in the investment portfolio were made, which resulted in a high level of profits for that period, most notably the sale of its interest in the Mykonos Casino for a profit of R91.8m.
It also reported a headline loss per share of 0.9cents as compared to headline earnings per share of 1.8c last year, attributing these to expenses on the take-on and refurbishment of new properties.
Trematon shares rose 5.33percent on the JSE yesterday to close at R3.16.