Blackstar records star quality profits - CNBC Africa

Blackstar records star quality profits

Earnings

by Trust Matsilele 0

Blackstar Group recorded level profits in 2013. PHOTO: Getty Images

The company declared an operational profit of 184,484 million rand for the year ended 31 December 2013 compared to 119,369 million rand of the same period in the previous year.

[DATA BCK:Blackstar Group SE] is an investment company focusing on increasing exposure to the growth on the African continent largely through companies in South Africa.

“The group achieved another successful year of growth and increased its intrinsic net asset value by 16.7 per cent before dividends for the 2013 financial year,” the Blackstar Group noted announcing its financial year results.

Blackstar's operational cost base for 2013 reduced by 1.7 per cent as the company focuses on three investment pillars which are property, fund management and investments.

“[The company] produced a pleasing set of results for the 2013 financial year achieving a record net asset value of 1.3 billion rand at year end and a net asset value per share of 1,620 cents,” Blackstar said.

“Given the strong performance of the company, the board has resolved to declare a final gross dividend of 14 cents per ordinary share for the year ended 31 December 2013.”

The company’s profits come on the backdrop of a weakening rand and rising inflationary environment. The South African economy has been facing acute challenges triggered by policy uncertainty, ceaseless industrial action and now easing off global recession.

The revenue for the year increased by 78.0 million rand amounting to 261.0 million rand.

The company’s profit before taxation was 184,276 million rand compared to 99,986 million rand the previous year. Blackstar’s income for 2013 was also up to 261,025 million rand from 183,031 million rand in 2012.

The outlook for the group remains optimistic with a solid balance sheet comprising of a strong investment portfolio thereby providing a foundation for growth and the ability to pursue exciting opportunities that come along the way.

BY TRUST MATSILELE

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