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Christo Wiese-backed investment group Brait said on Tuesday it had seen a strong operating performance from its most valuable asset, Virgin Active, reiterating that the most likely outcome for its gym and health business is its unbundling and separate listing.
The group previously told News24 in November that Virgin Active, which makes up 53% of its R17.2 billion in assets, could end up as a standalone listing in the medium to long term as part of the investment holding company's plans to return value to shareholders.
Reporting its full-year results for the year to end March, the company reported a "strong" operating performance from Virgin Active, which grew active membership 14% from to 963 000.
Southern Africa, its biggest market and contributing 37% of revenue, grew net members 34 000 to 611 000, while in Italy, 25% of revenue, net membership jumped 30 000 to 165 000.
Apart from Virgin Active, Brait has two other main investments, namely a 47% interest in food group Premier, which was listed on the JSE in March, raising proceeds of R3.6 billion for it, as well as a more than 18% interest in UK fashion group New Look.
Brait described the year under review as a "transformational" one for the group with full repayment of its revolving credit facility resulting in R366 million in interest savings per annum. A total of R900 million was paid in November with another R2.1 billion paid in April this year.
However, its net asset value, which is considered a key metric for investment holding companies, fell 16% to R7.06, while it reported a loss and headline loss per share of 70c, compared with earnings and a headline earnings per share of 47c.
Nevertheless, Brait reported its underlying investments performed strongly during the period.
Premier, which accounts for 21% of Brait's total assets, delivered earnings before interest, tax, depreciation and amortisation (ebitda) growth of 16% to R1.73 billion largely driven by its Millbake business. Virgin Active reported a "strong operating performance in the last six months across all key territories" with membership growing 14% to 963 000 over the past 12 months.
Its New Look investment reported a "solid operating performance despite the very difficult market conditions in UK fashion retail" with ebitda growing 68% to 42.2 million pounds
After dipping in early trade, shares in Brait were up almost 1% on Tuesday morning, having lost about a fifth over the past year. The company is trading at about a 53% discount to its NAV at period end.
Click here for details of the group's shares as well as other info.
