Trustco Group Holdings Limited Managing Director Quinton Van Rooney has for the first time revealed that his company ditched the Johannesburg Stock Exchange (JSE) Africa Board because of lack of strategic and marketing drive on the board’s part.
Trustco were one of the companies in the continent to jump on the Africa Board idea in 2009 with the hope of improving the multifaceted company’s portfolio in the continent but that dream never materialised as no other company listed on JSE Africa Board.
Van Rooyen told The Villager that, “Although we were the first ones to list on the Africa Board, we have for the past two years moved into listing in the main JSE board in search of more coverage, as we have realised the Africa Board was not giving us adequate coverage to the outside world which is what we were looking for ” .
The Africa board was created with the mission of providing a world class stock exchange platform and help attract capital to the African continent.
He added that prior to the move from the Africa Board to the main JSE; the Group had an extensive discussion with the Africa Board team explaining their reasons which they understood.
“I hope they will try to work on their visibility in order to attract more interest from the African investors; at this point I think they might just be having about three listings which are not enough. On the other hand, our listing to the main JSE has brought in more interest in our share than we had had on the Africa Board. JSE is basically seen in international eyes as the African Stock Exchange which is very beneficial for our market stock. It therefore allows us to expand its investor base regionally and globally. ” he said.
Since its integration in the JSE main board, the company trade in the speciality ‘finance’ sector of the JSE main board. Then, Trustco primary listing on the Namibian Stock Exchange was amended to a secondary listing.
According to NSX market reports, Trustco Group Holdings Limited shares have from the beginning of his year been trading well with its market capitalisation by free float which stood at N$316m by end January 2014 has increased over the months to N$ 494m by end April and was standing by end June at N$ 707m. By 7th July, the group was trading at N$ 1.90.
Trustco is a local multi faceted public company founded in 1992 with its current operations of the group focusing on four primary segments which comprise of insurance, education, Finance and Properties.
Its latest financial statement shows the net profit after tax for the financial year ended on March 2014 recorded an increase from N$ 39.4m in 2013 up to N$ 252.7m.The shareholder’s value for the year upped from N$ 968.1m in 2013 to N$1.2b with the directors confident that it will show growth for the foreseeable future.
Group Financial Director Ryan Mac Dougall, commenting on the company’s the group consolidated revenue of N$ 844m showing a marked increase from N$ 595m from the previous year. The growth in revenue was also accompanied by an increase of a gross profit margin from 60% in 2013 to 80% in 2014.
According to the different sectors, the insurance segment grew net profit after tax by 54% from N$67m in 2013 to N$103m. The Finance segment was able to achieve a 75% growth in credit extension.
Their education division grew a net profit after tax by 550% from N$4m in 2013 to N$22m in 2014 due to the demand of the available accredited courses. While their property segment saw notable development following their acquisition of Elisenheim Property Development Company. Purchased in December 2013 and resulted in gain from bargain purchase of N$3m.
The group has recently acquired 100% shares of Fides Bank Namibia Limited; the bank based in Ongwediva is one of six licensed banks in the country and own five other branches.