Namibian-based property firm Tradehold considers restructuring

Joint CEO Friedrich Esterhuyse said that Tradehold was in the final stages of restructuring its business to strengthen the focus on its property markets in the UK and SA

Namibian-based and JSE-listed Tradehold has announced it will unbundle its financial services assets, as it aims to invest solely in property.

The restructuring aims to strengthen the focus on its property markets in the UK and SA

Joint CEO Friedrich Esterhuyse said that Tradehold was in the final stages of restructuring its business to strengthen the focus on its property markets in the UK and SA and that his team’s deal-making skills had led to rapid growth in the company’s asset portfolio.

"As part of this process, the financial services businesses will be unbundled and listed separately to create two focused businesses, each with its own clear identity," he said. "Shareholders will receive shares in the new company equal to the number of shares held in Tradehold," Esterhuyse said.

It would continue to invest in Namibian property.

Its financial services assets were still small, but they were considered to be an effective platform for growth both organically and through acquisitions, Esterhuyse said.

Tradehold declared a dividend of 50c per ordinary share for the year to February, results showed on Thursday, five times higher than the 10c per share declared in the comparative 2017 period.

Revenue grew a strong 138.6% to £101m from £42.5m in the 2017 financial year, largely due to the first-time integration of results for a full financial period from Tradehold subsidiary the Collins Group.

Tradehold’s total assets increased 7.8% to £1.075bn from £997.6m during the financial year. The group is targeting about R20bn in assets by the end of the 2019 financial year.

Total profit attributable to shareholders was £30.8m, down sharply from £47.5m in the 2017 financial period. The decrease was mainly because Tradehold experienced a one-off gain of £21.6m in its 2017 financial year following the acquisition of Collins Group.

Headline earnings per share increased 300% during the reporting period to 9.2p from 2.3p while tangible net asset value per share was 11.2% higher at 144p, compared with 129.5p.

Esterhuyse said the year ahead would be challenging in the UK and SA.

"There is still no clarity as to how and on what basis the country [UK] will divorce itself from its European partners. Until that happens, the volatility in the British economy is bound to continue," he said.