JOHANNESBURG - Investment holding company, Long4Life, said on Friday that it had managed to raise R2billion from a wide spectrum of institutional and other shareholders since it listed on the JSE in April.
Long4Life founder and chief executive Brian Joffe said the company was out of the starting blocks.
“The formation and structuring of the company, the compilation of a skilled and knowledgeable board and management team, with significant transactional experience, has progressed well. Our foundational investments are exciting and attractively positioned to deliver future growth, while also providing the platform to conclude additional, larger and value enhancing transactions going forward,” Joffe said.
The group said that capital raised from the JSE listing has been directed towards acquiring investments, primarily in the personal care and wellness, as well as the sport and recreation sectors. “While we are focused predominately on lifestyle-type investments, we will always remain flexible enough to pursue opportunistic investments where we see the possibility of adding scale, and ultimately value for shareholders,” Joffe added. In its maiden results for the six months to end September, the group reported a trading loss of R4.9million, while profit came in at R41.3m. Headline earnings per share was 10.55cents a share.
The board intends to commence the payment of dividends with effect from the February 2018 financial year. “This will be based on the operating income of the group, excluding passive income, with appropriate dividend cover,” it said.
Long4Life’s predominant objective is to gain a 100percent holding in the businesses bought, and thereby benefit from the cash flows, but the company said it is also open to selective majority and minority interests. It has already acquired 100percent of Sorbet, a franchised business model offering a range of professional beauty therapy treatments as well as premium body and skincare products for women and men, 100percent of Holdsport, the leading retailer selling sport, leisure and recreational merchandise and 100percent of Inhle Beverages post the reporting period and are not included in the results.
The group’s management has started engaging the respective management teams of the various companies acquired, particularly about Long4Life’s philosophy of maintaining a decentralised operating structure, but providing support in terms of financial, strategic, capital access and allocation, as well as opportunity identification. The group said is had more than R400m in annualised earnings before interest, tax, depreciation and amortisation following its recent acquisitions.