Trustco Group revenues now exceed N$1.2 billion
The Trustco group announced this week it has increased operating profit by N$132 million, posting a profit before tax of N$581 million. This performance constitutes a 29% rise in EBIT.
In the same week the Trustco share price tanked more than 12% on the Johannesburg Securities Exchange, the diversified group, Trustco Group Holdings Limited announced its financial results for the year ended 31 March 2017 at an event held in the capital, Windhoek.
Group Managing Director, Quinton van Rooyen, said the group’s operations continued to demonstrate resilience in performance coupled with stable results in the face of adverse financial conditions in the region.
Trustco’s Revenue grew by 8% to N$1,247 million. According to Van Rooyen, the revenue grew substantially from previous years due predominantly to a surge in revenue from investments. The group’s real estate investments continued to post an exceptionally strong performance. Van Rooyen ascribed the results to a combinationi of maintaining its focus on priority markets and extracting value from its core business.
According to the group, investment income continued its positive momentum mainly from investment property capital gains and currency exchange gains.
Total expenses increased by 3%, which supported the growth of revenue. Interest cover ratio decreased from 4.35 times in FY2016 to 4.23 times in FY2017, however the number remains healthy.
In terms of Earnings per Share, the Group said they increased to 69 cents from 55 cents, a 25% growth, while headline earnings per share grew by 28% from 55 cents to 71 cents.
Meanwhile the growth in Net Asset Value of the group remains a function of organic growth in the main business areas.
“During the 2017 financial year growth in PPE, advances, investment properties and other receivables dominated the increases in the balance sheet and consistent with earnings, are largely attributable to investment activities,” the Group said.
Trustco did not divulge when it will pay the dividend to shareholders that was scheduled for February this year.