KK Combi, Executive Chairman, Thembeka Capital
Thembeka Capital, the black owned investment holding company and an associate of PSG Group, achieved solid growth in its investment portfolio during the financial year to February 2013.
The net intrinsic value of its portfolio after capital gains tax increased by 52% from R1 billion to R1.5 billion and the intrinsic value per share from R74.40 to R112.85 per share. This brought the compound annual growth rate over the last seven years to 48% with Thembeka’s OTC share price currently trading at R60.00 per share.
This growth was on the back of an excellent performance by its key strategic long-term investments including Capitec Bank and PSG Group and was further supplemented during the year by two additional long-term investments in Curro Holdings and Pioneer Foods.
Announcing the results, executive chairman KK Combi said “We believe that the addition of Curro Holdings and Pioneer Foods will add significantly to the long-term growth prospects of Thembeka’s investment portfolio.”
Recurring headline earnings increased by 28% to R92.8 million and recurring headline earnings per share also increased by 28% to R6.88 per share.
The company declared a dividend of 89 cents per share for the year, representing an increase of 16%. This is Thembeka’s sixth consecutive annual dividend with a combined total of R54 million in dividends been distributed to shareholders since 2008. The company is one of the few BEE investment companies that pay dividends.
“Thembeka’s core competitive strength is in its proven ability to partner with our investee businesses as a shareholder of reference and a key strategic black empowerment partner. Black empowerment remains a business imperative in South Africa and will continue to be a business driver and critical competitive advantage for Thembeka in sourcing investment opportunities.
“With adequate capacity for further investments, the company’s primary objectives over the short to medium term are to invest in cash generative, growth businesses and to unlock value for our shareholders,” said Combi.
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