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Trustco registers positive growth

Fri, 7 July 2017 18:36
by Kelvin Chiringa

The Trustco Group Holdings Limited’s has registered an uptick in revenue growth substantially accruing to N$1.2 million in 2017 from $N1.1 million recorded in 2016.

According to the Group Financial Director Floors Abrahams, this surge come from investments made and the company has realised a steady growth in insurance premiums, interest income and “other financial services related to income”.

The reviewed results for the year ended 31 March 2017 show that Earnings Per Share (EPS) achieved a result of 69 cents (2016: 55cents), representing a 25 percent growth from 2016. Trustco EPS thus sees a positive uptick trend with 2014 and 2015 having achieved a result of 44 cents and 55 cents respectively.

“Net profit after tax rose 26% to N$560 million which represented a Trustco registers positive growth in all areas of the business, albeit being substantially bolstered by another exceptional year in the property portfolio,” said Abrahams.

The annualized report further indicates that the investments segment’s net profit after tax grew by N$123 million, a 39% increase to N$440 million. The Group attributes the positive performance to the monetization of the real estate inventory held by the group and a strong demand within the local economy.

 “The group disposed of 54.4 hectares during the year and at the same time property debtors worth N$71.9 million were realised. The property debtors’ cycle is approximately 24 months,” says the report.

Abrahams further said during the year under review, the board decided against declaring any dividends for the financial year ended 31 March 2017. “The main reason for the decision is that the board members believe that Trustco would significantly increase its value by reinvesting its earnings and more specifically to capitalize the banking and finance segment and to invest in the resource segment,” he said. The Group Financial Director has also indicated that on the 11th of November 2016 the group acquired 51 percent of the voting equity of Meya mining which resulted in the group obtaining control over Meya mining.

Meanwhile the Group’s outspoken Managing Director (MD) Quinton van Rooyen has blasted government for meddling into business while he took the podium to advise GRN against adopting negative policies of its “disintegrating neighbors.” He was a taking a swipe at South Africa whose economy is mired in the mud of junk status while a few days ago a Zimbabwean government official was in the country advising government to fast track land acquisition, which has brought a calamity in his home-country.

“Government has the expertise to run government (but) business has the expertise to run business,” said Van Rooyen. He called for the sanitization of the beleaguered State Owned Enterprises (SOE) through reporting on corruption, moving in against unproductive CEOs and Boards of Directors.

“Government made those investments after independence to make a profit, it is business, the mission of any business is to create wealth, be profitable and pay tax, I believe it is the private sector’s duty to run a profitable company,” he said. He further blasted the New Equitable Economic Empowerment Framework as coming at a wrong time when the economy is bogged in recession and companies are low on liquidity. “There are so many businesses right now standing on the sidelines, wondering if they should invest, wondering whether they should take their wealth outside as fast as possible,” he said.