Other Investments

PROFILE: Business Partners is principally engaged in investing capital, knowledge and skill in viable small and medium sized enterprises (SMEs). The company invests in SMEs by providing funding, support and mentoring to entrepreneurs.

BUSINESS PARTNERS LIMITED (BUSINESS PARTNERS)

Business Partners has a March year-end and therefore its results for the 12 months to 31 March 2020 have been equity accounted in Remgro’s results for the year under review. Headline earnings attributable to Remgro for the year under review amounted to R25 million (2019: R65 million).

Business Partners’ headline earnings for the twelve months ended 31 March 2020 amounted to R59 million (2019: R152 million), while profit attributable to shareholders decreased by 75.1% from R213 million to R53 million. The decrease in profit is mainly due to a decrease in investment income and gains.

The impact of Covid-19 on the results of Business Partners was substantial and affected the two primary assets classes materially through the expected credit losses raised on the investment portfolio and the revaluation of the investment property portfolio.

The expected credit losses required an additional impairment charge of R84 million to account for the economic devastation caused by the fight against the virus increasing the impairment percentage from 9.5% to 12.4% of the gross portfolio value.

Net credit losses increased by 184.6% to R148 million (2019: R52 million). The impact of the virus on the economy, and specifically on asset prices, resulted in a devaluation of the investment property portfolio amounting to R64 million.

In providing financial support to SME entrepreneurs, the company’s key development impact objective is the employment that is facilitated or unlocked by the capital provided. Business Partners facilitated 16 440 job opportunities during the year under review (2019: 18 817).

Subsequent to 31 March 2020, Business Partners administered The South African SME Relief Trust (or the Sukuma Relief Programme) funded by Remgro and the Rupert Family to bring relief in the wake of the Covid-19 pandemic, as well as implemented and developed its own relief measures for its SME clients to assist in overcoming the economic challenges presented by Covid-19.

CAXTON CTP LIMITED (CAXTON) (INDIRECTLY HELD THROUGH FUNDCO AND BIDCO STRUCTURE)
PROFILE: Caxton is one of the largest publishers and printers of books, magazines, newspapers and commercial print in South Africa.
WEBSITE: www.caxton.co.za

INVENFIN PROPRIETARY LIMITED (INVENFIN)
PROFILE: Invenfin focuses on smaller early-stage investments.
WEBSITE: www.invenfin.com

MILESTONE CAPITAL III AND MILESTONE CAPITAL INVESTMENTS HOLDINGS
PROFILE: Milestone Capital, based in mainland Hong Kong, is a China-focused private equity investment firm.
WEBSITE: www.mcmchina.com