- November 19, 2012
- Posted by: admin
- Category: Niveus Investments
NIVEUS Investments, which was listed in September after Hosken Consolidated Investments (HCI) restructured some of its investments, ended the six months to September with a healthy cash balance of R138.5m, its results showed on Monday.
The stronger cash balance puts the newly listed company in a better position to expand its diversified portfolio.
At the same time last year there was only R7.75m in cash while the figure stood at R11.14m for the year to March 31.
However, the comparative figures for the income statement and balance sheet are not comparable due to the acquisition of the Galaxy Bingo and Formex Industries subsidiaries.
In addition, KWV Holdings was equity accounted from last December and there was an increase in shareholding to 39.9% from 35.5%, from July this year.
Niveus’ investments include Vukani Gaming, HCI Bingo, alcohol beverage maker HCI-KWV Holdings and automotive pressings and tubing component maker Formex.
HCI has stakes in the Golden Arrow bus company, e.tv and gaming and hotel company Tsogo Sun. Niveus acquired a 100% interest in Galaxy Bingo Group and a 90% interest in Formex Industries from July 1.
The subsidiaries contributed R128.3m of the group’s total revenue of R385.3m for the interim period. The pretax loss of the two businesses was R6.7m since the date of acquisition.
The company said Vukani’s contribution was “pleasing”, with gambling revenue rising to R252.6m from R196m in the same period last year. Galaxy Bingo continued to improve “month to month” due to more electronic bingo terminals.
Formex produced a negative earnings before interest, tax, depreciation and amortisation of R2.9m, for the three months that its results were included.
The automotive industry stayed under pressure after cost cutting from brand owners was felt down the manufacturing supply chain, the directors said.
Source: BDLive – Edward West