South Africa-based investment group Sekunjalo Investments on Tuesday reported a 63% increase in headline earnings to R30-million for the financial year ended August 31, as well as a 25% increase in revenue to R569-million from R455-million for the previous period, owing to the continued organic growth of underlying assets, substantial growth in investment performance and new contracts obtained in its operating businesses.

The group’s net asset value (NAV) a share also increased by 7% to 96.5c, while tangible NAV grew by 7% to 86.26c a share. At year-end the company’s underlying NAV a share was 154.2c.

Sekunjalo had successfully met its objective to increase its NAV by improving the operational performance of its underlying businesses and investments, during the year under review, the company said.

Sekunjalo’s underlying operations showed consistent sustainable earnings with profit before tax at R58-million, compared with R48-million in 2012, as a result of solid performances from the group’s two main operating subsidiaries, Sekunjalo Technology Solutions Group (TSG) and Premier Fishing.

“Strategies implemented by the board are beginning to bear fruit and the strong growth in earnings, as well as the good cash flows, indicate that the group is beginning to generate significant value for its shareholders,” Sekunjalo executive chairperson Dr Iqbal Survé said.

Owing to Sekunjalo’s reinvestment into the organic growth of TSG, the information and communications technology (ICT) division was performing in line with expectations, with operating profits of R35-million for the year, Sekunjalo CEO Khalid Abdulla said.

“This was achieved through the implementation and roll-out of long-term contracts secured during the prior financial years,” he explained.

Sekunjalo TSG’s operations continued to perform well with revenue from operations increasing by 27% to R192-million, compared with R152-million during the prior year.

Meanwhile, Premier Fishing generated an operating profit for the year under review, maintaining its performance with major contributions from its rock lobster divisions on the south coast and west coast of South Africa.

The group’s noncontrolling interests in large multinational companies British Telecom Communication Services South Africa and Pioneer Foods Group also strengthened its financial position.

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

Sekunjalo Media also owned the rights to and managed the Cape Town International Jazz Festival, which the group said continued to bear fruit and contributed greatly to the gross domestic product of the Western Cape and national economy.

“Sekunjalo is on a firm footing and moving towards a position where directors can focus their minds on further expansion, both operationally and through strategic investments,” Abdulla said.

“Overall, we are in a much stronger position. Our balance sheet is strong, our cash flow is improving and prospects for our mainstay businesses are looking promising. We are also expanding our existing businesses and looking at new strategic investments,” he added.