General report – investment review

(Note: Only limited commentary is given for listed companies seeing that the information is generally available. The unlisted investments are dealt with in more detail.)

 

 

OTHER INVESTMENTS

CONTRIBUTION TO HEADLINE EARNINGS
	2010	2009
	R million	R million
Business Partners	12	28
Xiocom*	(79)	(108)
Other	3	–
	(64)	(80)

* Sold during March 2010

 

BUSINESS PARTNERS LIMITED – effective interest: 21.5%

EQUITY VALUATION AT 31 MARCH 2010: R982 MILLION
	UNLISTED
	CHIEF EXECUTIVE OFFICER: N MARTIN
	PROFILE Business Partners is a specialist investment company providing customised and integrated investments, mentorship and property management services for small and medium enterprises in South Africa.
	REMGRO NOMINATED DIRECTORS J W Dreyer, J P Rupert, T van Wyk
	WEBSITE: www.businesspartners.co.za

 

Business Partners Limited (“Business Partners”) is a specialist investment group, providing risk finance, mentorship and property management services to small and medium enterprises in South Africa.

Headline earnings for the twelve months ended 31 March 2010 amounted to R56 million (2009: R94 million) representing a decrease of 40% compared to the previous year. Headline earnings attributable to Remgro for the period was R12 million (2009: R28 million).

The recent economic recession continued to impact negatively on small businesses, resulting in high bad debts and impairment charges negatively affecting the headline earnings of Business Partners. In addition, operating income was negatively impacted by the decrease in interest rates over the course of the financial year, resulting in lower interest revenue from the investment portfolio.

Investments to the value of R678 million (2009: R873 million) were advanced during the year, a decrease of 22% in investment activity.

OTHER INVESTMENTS
FRAXION (PTY) LIMITED – effective interest: 35.1%
	PROFILE Fraxion develops and sells advanced spend management software that allows companies to control, manage and analyse spending behaviour in real time.
	WEBSITE: www.fraxion.co.za
FRINGLAND LIMITED – effective interest: 3.7%
	PROFILE fring, an Israeli mobile communications company, develops and markets a mobile internet service which enables its users to communicate with other fring users.
	WEBSITE: www.fring.com
FYNBOS (PTY) LIMITED – effective interest: 20.0%
	PROFILE Fynbos is an early-stage black-controlled investing holding company that makes equity investments with a view to longterm capital appreciation.
	WEBSITE: www.fynbosmedia.co.za
MILESTONE CAPITAL I AND II – effective interest: 10.5% and 8.1%
	PROFILE Milestone Capital, based in mainland China, is a Chinafocused private equity investment firm.
	WEBSITE: www.mcmchina.com
VERITAS – effective interest: 3.7%
	PROFILE Veritas is Israel’s oldest venture capital firm and primarily invests in seed-stage technology companies.
	WEBSITE: www.veritasvc.com