Trustco valuation on the up
Trustco Group Holdings' net asset value (NAV) increased by 9.5% from N$1.15 billion to N$1.26 billion during the last six months.
The NAV per share similarly grew to 128.2 cents, from 117.1 cents.
The group’s profit for the 6 months ended 29 February 2024 was N$110 million, compared to a loss of N$250 million in the previous corresponding period.
Basic and headline earnings per share were 11.17 cents, with Trustco describing the performance as a significant improvement from the previous interim period.
Trustco's insurance, commercial banking and commercial banking portfolios came under same pressure during the review period on the back of market volatility and and a high interest rate environment, it said.
"Trustco’s portfolio valuations showed mixed performance across various sectors. The micro-finance portfolio reduced by N$90.7 million, while the commercial banking and education portfolios decreased by N$1.3 million and N$20.7 million, respectively. The insurance portfolio also recorded a decline of N$50.9 million, primarily due to market volatility and higher interest rates. However, the real estate portfolio increased by N$70.7 million, driven by rising demand for prime real estate in Namibia. The mining portfolio grew by N$154.5 million, owing to increased commercial production, and favourable exchange rates," Trustco said.
Riskowitz
A long-term arrangement with its United States (US) shareholder, the Riskowitz Value Fund, places Trustco in a position to access US$100 million in capital that when deployed, will open up Trustco to investment opportunities.
"The group has entered into an agreement with the US-based long-term shareholder Riskowitz Value Fund, providing access up to U$S100 million in hybrid capital, enabling Trustco to seize immediate investment opportunities across its basket of investment portfolios, as well as new prospects. Additionally, Trustco has announced the acquisition of an additional 11.35% interest in Legal Shield Holdings Limited for N$468 million in shares at N$1.17 per share, increasing its holding to 91.35% and strengthening its investment footprint in Namibia’s insurance and real estate sectors," Trustco said.
"The Trustco board is also finalising the agreement for the debt-to-equity conversion with the founding family, Next Capital, as previously announced. This transaction aims to convert N$4.4 billion (US$235 million) debt and equity liabilities from the statement of financial position, into equity. Full details will be shared with shareholders once the terms are finalised, and all these transactions will follow the required full circular and regulatory processes," Trustco added.
The NAV per share similarly grew to 128.2 cents, from 117.1 cents.
The group’s profit for the 6 months ended 29 February 2024 was N$110 million, compared to a loss of N$250 million in the previous corresponding period.
Basic and headline earnings per share were 11.17 cents, with Trustco describing the performance as a significant improvement from the previous interim period.
Trustco's insurance, commercial banking and commercial banking portfolios came under same pressure during the review period on the back of market volatility and and a high interest rate environment, it said.
"Trustco’s portfolio valuations showed mixed performance across various sectors. The micro-finance portfolio reduced by N$90.7 million, while the commercial banking and education portfolios decreased by N$1.3 million and N$20.7 million, respectively. The insurance portfolio also recorded a decline of N$50.9 million, primarily due to market volatility and higher interest rates. However, the real estate portfolio increased by N$70.7 million, driven by rising demand for prime real estate in Namibia. The mining portfolio grew by N$154.5 million, owing to increased commercial production, and favourable exchange rates," Trustco said.
Riskowitz
A long-term arrangement with its United States (US) shareholder, the Riskowitz Value Fund, places Trustco in a position to access US$100 million in capital that when deployed, will open up Trustco to investment opportunities.
"The group has entered into an agreement with the US-based long-term shareholder Riskowitz Value Fund, providing access up to U$S100 million in hybrid capital, enabling Trustco to seize immediate investment opportunities across its basket of investment portfolios, as well as new prospects. Additionally, Trustco has announced the acquisition of an additional 11.35% interest in Legal Shield Holdings Limited for N$468 million in shares at N$1.17 per share, increasing its holding to 91.35% and strengthening its investment footprint in Namibia’s insurance and real estate sectors," Trustco said.
"The Trustco board is also finalising the agreement for the debt-to-equity conversion with the founding family, Next Capital, as previously announced. This transaction aims to convert N$4.4 billion (US$235 million) debt and equity liabilities from the statement of financial position, into equity. Full details will be shared with shareholders once the terms are finalised, and all these transactions will follow the required full circular and regulatory processes," Trustco added.
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