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SALIENT FEATURES
EXTRACTED FROM THE
AUDITED PRELIMINARY
Incorporated in the Republic of South Africa
SUMMARISED RESULTS
Registration number 2020/030059/06 for the year ended
“Sabcap” or “the Group” or “the Company”
31 December 2022
ISIN: ZAE000283511
JSE share code: SBP and cash dividend declaration
PROFILE
Sabvest Capital Limited (Sabcap) is an investment group first listed on the JSE in 1988 as Sabvest Limited and as Sabcap from 2020. The Seabrooke Family Trust (SFT) has
voting control of Sabcap through an unlisted Z share and has an economic interest of 40,5% through its holding in the listed ordinary shares. At the year-end Sabcap had
39 400 000 shares in issue net of treasury shares (2021: 39 530 000).
Sabcap has long-term interests in thirteen unlisted and three listed investments, all accounted for on a fair value basis. Sabcap’s primary focus is on industrial and service
businesses, usually unlisted and co-invested with family, management or financial partners in terms of Sabcap’s Partnership Principle. Sabcap also makes finance advances
and holds listed debt, equity and cash portfolios when it has surplus liquidity, and undertakes other fee and profit earning activities from time to time.
RESULTS
% change 2022 2021
Net asset value per share – cents +17,6 11 017 9 371
Headline earnings per share – cents (5,8) 1 591,2 1 689,7
Earnings per share – cents (5,9) 1 590,7 1 689,6
Dividends per share – cents +20,0 90 75
Revenue * – R’m (11,9) 240,7 273,1
Profit after taxation – R’m (7,6) 627,9 679,2
Total comprehensive income – R’m (7,6) 679,6 735,2
Shareholders’ funds – R’m +17,2 4 340,9 3 704,3
Gross assets – R’m +19,8 5 110,1 4 265,2
* Revenue comprises dividends, fees and interest.
GROWTH METRICS
Sabcap’s primary financial metric is growth in NAV per share. The 15-year compound annual growth rate (CAGR) in NAV per share to the 2022 year-end was 17,0%,
calculated without reinvesting dividends. The CAGR after reinvesting dividends was 18,1% (calculated with dividends notionally not paid and the amounts notionally
retained by the Company, growing at 10% per annum).
Sabcap’s share price is usually at a discount to its NAV per share but the discount narrowed considerably in 2022. However, notwithstanding the fluctuating discounts in
different periods, the growth in share price itself over different periods is set out in the table below. The growth rate over one year was 37,1% and the CAGR over 15 years
was 16,3%.
PERCENTAGE COMPOUND GROWTH
1 year 3 years 5 years 10 years 15 years
Cents % % % % %
NAV per share 11 017 17,6 18,3 16,7 19,5 17,0
Market price per share * 8 360 37,1 31,2 26,5 17,3 16,3
*T
he one-year CAGR is calculated using the Sabcap share price, with the remaining CAGRs calculated with reference to the weighted average share prices of the Sabvest ordinary and ‘N’ ordinary shares.
INVESTMENT HOLDINGS PER SECTOR
as at 31 December 2022
Listed/ Number of ordinary Economic interest Fair value
Unlisted shares/units % R’000
Industrial and Services
Apex Partners Holdings (Pty) Ltd U 44,8 504 023
ARB Holdings (Pty) Ltd U 18,5 250 256
Classic Food Brands (Pty) Ltd U 40,0 8 205
DNI-4PL Contracts (Pty) Ltd U 19,9 1 028 087
Flexo Line Products (Pty) Ltd U 47,5 7 033
Halewood International South Africa (Pty) Ltd U 19,0 165 586
ITL Holdings Group U 34,4 786 454
Metrofile Holdings Limited L 56 000 000 13,1 196 000
SA Bias Industries (Pty) Ltd U 85,2 1 018 861
Sunspray Food Ingredients (Pty) Ltd U 27,7 86 624
Valemount Trading (Pty) Ltd U 39,3 44 721
4 095 850
Mining, Chemicals and Agriculture
Masimong Group Holdings (Pty) Ltd U 10,0 452 510
Rolfes Holdings (Pty) Ltd *1 U 25,0 189 289
641 799
Specialised Financial and Technology
Corero Network Security Plc L 50 000 000 10,1 94 486
Revix UK U 11,0 –
Transaction Capital Limited *2 L 5 000 000 0,7 165 500
259 986
TOTAL NON-CURRENT INVESTMENT HOLDINGS 4 997 635
*1 Reclassified during the current reporting period due to a change in its business mix with the proportion from food chemicals increasing materially (previously classified under Industrial and Services).
*2 In a SENS announcement released on 14 March 2023, Transaction Capital (“TC”) advised shareholders that the cyclical headwinds facing its SA Taxi division post the disruption of COVID, together with the
ongoing effects of load shedding and adverse economic conditions, necessitate a simplification of its business model to a lower and more variable cost base, higher quality loan origination and a lower number of new
loans. As a consequence, TC has advised of the need for one-off provisions against SA Taxi’s loan book and repossessed inventory, and signaled lower TC core EPS in the coming reporting period. The TC share price
dropped materially after the announcement. As a result, the fair value of Sabcap’s investment in TC has reduced from R165,5m at 31 December 2022 to R73,0m at 15 March 2023 (being the last practicable date
before the release of Sabcap’s 2022 results). After adjusting for deferred tax of R20,0m on this movement, the net impact of R72,5m on Shareholders Equity is equivalent to a reduction of 184c in Sabcap NAV
per share of 11 017c at the reporting date.
PROSPECTS
Sabcap is comfortable with the current performance and future prospects of most of its unlisted investees and, in particular, of the new investments concluded during the
period. The share prices of its three listed investments are market determined and their fair values are the market prices at each reporting date.
Accordingly, Sabcap expects satisfactory growth in NAV per share in 2023. It is also worth noting that the discount of Sabcap’s share price to its NAV per share narrowed
considerably in 2022 and Q1 2023, and the growth in share price continues to track or exceed the growth in NAV per share.
Management regards Sabcap as fully invested at the present time.
References to future financial information in this announcement have not been reviewed or reported on by the Group’s auditors.
CASH DIVIDEND DECLARATION
Notice is hereby given that a final dividend of 60 cents (2021: 55 cents) per ordinary share for the year ended 31 December 2022 has been declared out of income reserves
making a total of 90 cents for the year (2021: 75 cents).
The issued share capital of the Company at the declaration date is 39 550 000 ordinary shares. The income tax number of the Company is 9660061186.
Withholding tax on dividends at a rate of 20% will be deducted for all shareholders who are not exempt in terms of the applicable legislation. This will result in a final net
cash dividend of 48 cents per ordinary share to non-exempt shareholders.
Last date to trade “CUM” dividend Tuesday, 11 April 2023
Trading “EX” dividend commences Wednesday, 12 April 2023
Record date Friday, 14 April 2023
Dividend payment date Monday, 17 April 2023
No dematerialisation or rematerialisation of share certificates will be allowed during the period Wednesday, 12 April 2023 to Friday, 14 April 2023, both days inclusive.
Sandton
16 March 2023
The short-form announcement, prepared by the directors, has itself not been audited, however, the financial information included herein has been correctly extracted from the audited
consolidated annual financial statements which have been audited by Deloitte & Touche.
This announcement is a summary of information in the full announcement and does not contain full or complete details and is the responsibility of the directors. Any investment decisions
by investors and/or shareholders should be based on the full announcement which is available on https://senspdf.jse.co.za/documents/2023/JSE/ISSE/SBPE/YEres22.pdf and
published on the Company’s website on http://www.sabvestcapital.com/pdf/2023/YE-results-Dec22.pdf on 16 March 2023. The full announcement is also available for inspection
at Sabcap’s registered office and the offices of the sponsor at no charge, between 8:30 and 17:00, Monday to Friday or may be requested by emailing ho@sabvest.com.
The annual financial statements including the audit opinion of the external auditor, Deloitte & Touche, which sets out the key audit matters and the basis for its unmodified opinion, is
available on the Company’s website on http://www.sabvestcapital.com/pdf/2023/AFS-Dec22.pdf
Registered address: 4 Commerce Square, 39 Rivonia Road, Sandhurst, Sandton 2196
Communications: Postal address: PO Box 78677, Sandton 2146, Republic of South Africa
Telephone: (011) 268 2400 • Fax: (011) 268 2422 • e-mail: ho@sabvest.com
Transfer secretaries: Computershare Investor Services (Pty) Ltd, Rosebank Towers, 15 Biermann Avenue, Rosebank 2196 (PO Box 61051, Marshalltown 2107)
Directors: K Pillay # (Chairperson), O Ighodaro # (Lead Independent Director), CS Seabrooke * (Chief Executive), BJT Shongwe #
GRAPHICULTURE
L Mthimunye #, K De Matteis *, L Rood * *Executive #Independent
Sponsor: Rand Merchant Bank (A division of FirstRand Bank Limited), 1 Merchant Place, Corner of Fredman Drive and Rivonia Road, Sandton 2196
Company Secretary: Levitt Kirson Business Services (Pty) Ltd
www.sabvestcapital.com
