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Trustco’s Q3 profits down 7%

Trustco, the diversified financial services Group, has announced a 6.9% drop in third quarter profits attributed to the launch of Yambu, a micro insurance product in South Africa.
For the quarter ending 31 December, the group recorded a net profit of N$52.6 million down from the normalised profit of N$56.5 million in the comparative period.
Headline earnings per share for the period is 7.31 cents and basic earnings per share is 7.34 cents.
Despite the drop in profits, the educational loan book grew by 16% resulting in year on year profits of the division growing by 22.5%. In a statement, Trustco says this strong growth was achieved through strategic partnerships with international lending institutions which culminated in borrowing arrangements which were primarily focused to grow the loan book.
The Namibian micro-insurance segment’s after tax profits also grew by 12.6% from the comparative period, and significantly increased the group’s customer offering.
The group also said the trial roll-out of the micro-insurance life cover offered through Shoprite retail outlets in Namibia has yielded positive results. “Management is now content that the experiment can be tried in other regions of the continent, albeit selectively,” the statement from Trustco said.
The company added that the launch of a new micro-insurance offering in South Africa in November under the “Yambu” brand has given effect to the long awaited contemplation to roll-out the Namibian business model to other countries.
“The Yambu product continues to impress and the sales momentum in the product has steadily met the expectations of management. This initial phase coupled with the scaled down historic back office business has resulted in the South African micro-insurance segment contributing only 0.99 cents per share to the headline earnings (2012: 0.27).”
The properties segment grew by 24.5% when compared to the comparative period in the 2012 financial year. Only a limited number of properties in the first phase of the Land Bank project remain unsold. Phase two of the project will be launched in the 2014 financial year.
Trustco advised shareholders that historically the final quarter of the financial year has on average delivered higher earnings when compared to the preceding financial quarters.

About The Author

Following reverse listing, public can now acquire shareholding in Paratus Namibia


20 February 2020, Windhoek, Namibia: Paratus Namibia Holdings (PNH) was founded as Nimbus Infrastructure Limited (“Nimbus”), Namibia’s first Capital Pool Company listed on the Namibian Stock Exchange (“NSX”).

Although targeting an initial capital raising of N$300 million, Nimbus nonetheless managed to secure funding to the value of N$98 million through its CPC listing. With a mandate to invest in ICT infrastructure in sub-Sahara Africa, it concluded management agreements with financial partner Cirrus and technology partner, Paratus Telecommunications (Pty) Ltd (“Paratus Namibia”).

Paratus Namibia Managing Director, Andrew Hall

Its first investment was placed in Paratus Namibia, a fully licensed communications operator in Namibia under regulation of the Communications Regulatory Authority of Namibia (CRAN). Nimbus has since been able to increase its capital asset base to close to N$500 million over the past two years.

In order to streamline further investment and to avoid duplicating potential ICT projects in the market between Nimbus and Paratus Namibia, it was decided to consolidate the operations.

Publishing various circulars to shareholders, Nimbus took up a 100% shareholding stake in Paratus Namibia in 2019 and proceeded to apply to have its name changed to Paratus Namibia Holdings with a consolidated board structure to ensure streamlined operations between the capital holdings and the operational arm of the business.

This transaction was approved by the Competitions Commission as well as CRAN, following all the relevant regulatory approvals as well as the necessary requirements in terms of corporate governance structures.

Paratus Namibia has evolved as a fully comprehensive communications operator in Namibia and operates as the head office of the Paratus Group in Africa. Paratus has established a pan-African footprint with operations in six African countries, being: Angola, Botswana, Mozambique, Namibia, South Africa and Zambia.

The group has achieved many successes over the years of which more recently includes the building of the Trans-Kalahari Fibre (TKF) project, which connects from the West Africa Cable System (WACS) eastward through Namibia to Botswana and onward to Johannesburg. The TKF also extends northward through Zambia to connect to Dar es Salaam in Tanzania, which made Paratus the first operator to connect the west and east coast of Africa under one Autonomous System Number (ASN).

This means that Paratus is now “exporting” internet capacity to landlocked countries such as Zambia, Botswana, the DRC with more countries to be targeted, and through its extensive African network, Paratus is well-positioned to expand the network even further into emerging ICT territories.

PNH as a fully-listed entity on the NSX, is therefore now the 100% shareholder of Paratus Namibia thereby becoming a public company. PNH is ready to invest in the future of the ICT environment in Namibia. The public is therefore invited and welcome to acquire shares in Paratus Namibia Holdings by speaking to a local stockbroker registered with the NSX. The future is bright, and the opportunities are endless.