South Africa-based investment group Sekunjalo Investments on Tuesday reported a 12% increase in headline earnings a share to 3.72c for the six months ended February 28, while revenue for the period was up 7% to R242-million, as a result of the strong operational performance of the group’s underlying businesses.

The group’s net asset value (NAV) a share also increased to 100.23c, up from 93.9c during the prior corresponding period, while tangible NAV a share grew to 90.17c from 83.83c previously.

Further, the group’s asset base increased by R61.6-million to R959.6-million, from R897.9-million for the comparative period under review.

Sekunjalo CEO Khalid Abdulla said the company’s financial performance could be attributed to improved operational efficiencies.

“The Sekunjalo strategy of growing NAV by investing its surplus capital in its underlying businesses is reaping the benefits as a result of this approach, [with] the board and the company looking forward to a strong performance in the years ahead,” the company stated.

Meanwhile, Abdulla said the reinvestment in the organic growth of the group’s operations was also showing the expected benefits with operating profit of R38.9-million – an 18% improvement on that of the prior corresponding period.

Further, the group’s Premier Fishing business had steadily improved its performance during the period under review with the major contribution coming from the South Coast rock lobster and abalone divisions.

Sekunjalo’s information and communications technology (ICT) operations also continued to perform above expectation following the successful implementation of the National Health Laboratory Systems project, which would now move to annuity maintenance mode.

“The fishing and ICT divisions have built a strong platform for further organic growth and the group is well positioned to increase its investments further through acquisition,” Sekunjalo said.

Abdulla further pointed out that the healthcare division’s revenue had grown by 29%, with the natural chemicals range of products in the healthcare division improving its performance.

The performance of the group’s investments in large multinational companies, British Telecom Communication Services South Africa and Pioneer Foods Group had also contributed to the solid interim results.