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After brief blip, Trustco share price settles at 55 cents

After brief blip, Trustco share price settles at 55 cents

Trustco Group Holdings Ltd seems to be out of the doldrums. For the six-month interim period ended 29 February 2024, the group has posted a profit of N$110 million as opposed to a loss of N$250 million in the comparable period a year earlier.

But the interim results published on Friday 31 May 2024 show a mixed bag of results. Losing ground were the micro-finance, commercial banking, education, and insurance portfolios but gaining strongly were real estate and mining.

This good news raised the share price briefly from 55 cent to 65 cent but by 12:00 on Friday, it has settled back at the 55 cent level. On 04 March this year, Trustco was trading at an all-time low of 5 cent per share.

In a statement announcing the interim results, Trustco said its Net Asset Value increased by 9.5% from N$1.15 billion to N$1.26 billion. This improvement also reflected in the NAV per share.

Basic and headline earnings per share were 11.17 cent, a significant improvement from the previous interim period.

Against minor to substantial losses in micro-finance, commercial banking, education and insurance, the performance of the real estate and mining portfolios saved the group’s overall valuation. Real estate increased by nearly N$71 million while mining grew a whopping N$154 million.

Group Deputy Chief Executive, QZ van Rooyen said “The past period demonstrated why we pursue a generational multi-sector investment strategy. When one portfolio faced challenges, other portfolios compensated for it. This balanced approach is key to Trustco’s consistent delivery of superior value.”

The Group has entered into an agreement with the US-based long-term shareholder Riskowitz Value Fund, providing access up to US$100 million in hybrid capital to bolster the existing portfolios as well as pursue new prospects.

Trustco said its board is finalizing an agreement for a debt-to-equity conversion of the N$4.4 billion the group owns Next Capital, the investment vehicle of the founding shareholders.


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