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ACQUISITIONS HELP HCI RAISE ATTRIBUTABLE EARNINGS TO R30M

01 Jun General

Hosken Consolidated Investments (HCI) lifted its attributable earnings to R30,1m from R28,9m for the year ending March on the back of acquisitions made during the review period. The group – which bought into Datatec, Softline, Unibank, Midi-TV and Everest Systems Solutions during the review period – increased its net asset value a share to 310c from 239c. Dividends were not declared as cash resources were required for further investments. Attributable earnings a share before nonrecurring items was reduced to 9,1c from last year’s 11,0c. The group’s post-tax income was R10,9m compared to R1,6m of the previous year. Investment income rose to R11m from R2,4m while operating income, which ran at a loss last year, was R2,9m for the year under review. HCI is involved in bids for route operator’s licences, which are to be issued in the next 12 months. It is also part of a consortium vying for the national lottery licence. Group chairman Marcel Golding said these opportunities could provide shareholders with significant blue sky during the current year should the bids be successful. The group plans to extend its media interests in radio and television. “This should result in a broader interest in a highly lucrative and growing sector”, he said. The group, which bought a 12,5stake in Datatec for R170m, intends to expand its involvement in Datatec in the current year, which could include a joint venture between the two and an increased stake of HCI in Datatec. The group’s investments were performing above average and the directors expected this to continue into the next financial year. Recent group acquisitions included a 30stake in financial services company BFS Capital for R74m and a 33,3interest in Global Payment Technology Holdings which specialises in smart cards, point of sale terminals, gaming and cash holding system.

Source: Business Day