DURBAN – JSE-listed investment holding company Sabvest Capital (Sabcap) will proceed with the payment of an interim dividend for the six months to end June following an improvement in trading conditions of its investee companies.
The company said during its results presentation in September that it had deferred the decision on the payment of a dividend until its board meeting next month.
However, yesterday the group declared an interim dividend of 10 cents a share, down from last year’s dividend of 36c.
“With regard to the deferred interim dividend, the board has now resolved to declare an interim dividend, but at a lower level than the prior comparative six month period to end June 2019, due to the use of cash for Sabcap share buy-backs and for the Sabvest shares acquired under the section 164 appraisal rights process,” the group said.
The company’s wholly-owned subsidiary, Sabvest Limited, bought back 251 880 Sabvest shares at delisting in May, due to appraisal rights exercised by the holders of those shares in terms of section 164.
The group said the deemed buy-back price would be determined in the course of the appraisal process and payment would be effected thereafter.
Sabcap said most of its investee companies were now trading at close to pre-Covid-19 levels, or were reasonably expected to do so within the next six months, subject to the effects of any changes in Covid-19 mitigation policies in the countries in which the investees operated.
“More particularly, the cash flows from investees to the group, in the form of dividends, interest and fees, have resumed or are reasonably expected to do so shortly,” the group said.
Sabcap has invested in listed companies like Brait, Metrofile Holdings and Transaction Capital and unlisted companies which include ITL Holdings Group, Masimong Group Holdings and Apex Partner Holdings.
The group said the only investee still adversely affected by Covid-19 was the ITL Group.
“However, its revenues, earnings and cash flows are expected to normalise in the third quarter or fourth quarter when seasonal demand from its US, UK and EU retail accreditations should return to 2019 levels. It also continues to achieve significant growth in demand for its RFID programmes from its existing and new retail customers,” the group said.
Sabcap was not considering making new unlisted investments internationally as well in South Africa.
However, in South Africa the group increased its holdings in DNI and Masimong since the interim reporting date in September.
Sabcap shares closed 1.82 percent higher at R28 on the JSE on Tuesday.