Brait delivers favourable CAGR performance

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“Brait targets growth in its NAV per share at a compound rate of at least 15 per cent per annum (CAGR) over any three-year period commencing 1 April 2011 and assuming an opening NAV of 16.50 rand,” the investment holding company said.

“The CAGR achieved of 24.6 per cent over the three years ended 31 March 2014 compares favourably to this 15 per cent benchmark performance measure. The group’s NAV per share of 31.95 rand at 31 March 2014 represents a 19.9 per cent increase on the 26.64 rand NAV reported at 31 March 2013.”

However, [DATA BAT:Brait SE], which is also listed on the Luxembourg Stock Exchange, reported an NAV CAGR decrease from 27 per cent in the year ended 31 March 2013 to 25 per cent for the same period in 2014.

Cash flow from its investment portfolio increased to 354 million rand in the 2014 year from 274 million rand in 2013.

“Pepkor’s sales for the first six months of its FY2014 are 21 per cent up on the comparative period. Premier Group’s sales for the first six months of its FY2014 increased nine per cent on the comparative period. Continued focus on operational efficiencies and costs resulted in EBITDA margins expanding to 7.5 per cent,” Brait SE said.

“Iceland Foods’ sales for its FY2014 increased by three per cent and cash generation remained on plan. The challenging market conditions in the UK market led to pressure on margins. The weakening of the Rand/GBP exchange rate has mitigated this.”

Profit for the year declined from three billion rand in 2013 to 2.6 billion rand in 2014 and basic and diluted headline earnings per share decreased to 480 cents from 581 cents.

“Pepkor continues to perform well across its geographies. Africa represents an exciting opportunity given the Pep format, logistical expertise and product offering. Premier Group is delivering on its strategy of operational efficiencies and consistent quality. Iceland Foods continues to generate strong cash flows,” said Brait SE.

“The defensive nature of the portfolio continues to be borne out and enhanced through the generation of strong cash flow and growing geographic spread. Brait’s ungeared balance sheet with cash and facilities available for investment sees it well placed to be cautiously opportunistic on deal flow that ‘moves the dial’.”